| From: Dr_of_Microcaps | 2/2/2013 1:17:04 AM | | | | | |
Newell Rubbermaid Reports Solid Fourth Quarter 2012 Results and Provides 2013 Guidance Normalized EPS of $0.43, up 7.5 Percent vs. Prior Year Reported EPS of $0.35, up 29.6 Percent vs. Prior Year  Press Release: Newell Rubbermaid Inc. – 18 hours ago
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ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid ( NWL) today announced solid fourth quarter 2012 results.
“We are pleased with our quarterly and full year 2012 performance,” said President and Chief Executive Officer Michael Polk. “Our solid fourth quarter financial results represent the sixth consecutive quarter of consistent delivery in line with or better than expectations. Full year normalized EPS and operating cash flow both came in above the high end of our guidance range. We increased core sales by 2.2%, a sequential improvement versus last year, and a solid outcome in the face of tough economic conditions in Europe and challenges in our Décor business. Our Win Bigger brands have healthy share momentum and we are generating strong core sales growth in emerging markets, particularly in Latin America. We also returned significant levels of cash to shareholders through our dividend, which nearly doubled in 2012 to the current annualized rate of $0.60, and our ongoing share repurchase program.”
Polk added, “Looking ahead, we continue to be sharply focused on driving structural costs out and accelerating growth through the execution of our Growth Game Plan. The strategic changes we are making to invest behind our Win Bigger businesses will drive accelerated performance and enable us to build a bigger, faster-growing, more global and more profitable Newell Rubbermaid.”
Executive Summary
Fourth quarter 2012 net sales were $1.52 billion, an increase of 1.6 percent versus prior year results. Core sales, which exclude the impact of changes in foreign currency translation, grew 2.2 percent. Normalized diluted earnings per share were $0.43 compared with $0.40 in the prior year period; reported diluted earnings per share were $0.35 compared with $0.27 in the year-ago period. Operating cash flow in the quarter was $261.3 million. Full year 2012 operating cash flow was $618.5 million, an improvement of $57.2 million versus prior year. The company returned $67.8 million to shareholders in the fourth quarter through dividends of $43.5 million and the repurchase of 1.1 million shares at a cost of $24.3 million. The company strengthened its balance sheet and reduced ongoing interest expense through the early repayment of $500 million in 5.5% notes due April 2013. The debt was refinanced through the issuance of $350 million in 2.05% notes due 2017, cash on hand and short-term borrowings. The company provided 2013 guidance for core sales growth in a range from 2 to 4 percent, normalized operating margin improvement of up to 20 basis points, normalized earnings per share of $1.78 to $1.84 and operating cash flow of $575 to $625 million, which includes an incremental pension plan contribution of $50 million. Fourth Quarter 2012 Operating Results
Net sales in the fourth quarter were $1.52 billion, an increase of 1.6 percent compared with the prior year. Core sales, which exclude 60 basis points of adverse foreign currency translation, grew 2.2 percent. Sales growth was largely attributable to the Tools, Baby & Parenting and Writing segments and to robust growth in Latin America.
As expected, gross margin of 36.5 percent represented a decline of 70 basis points versus prior year. Normalized gross margin decreased 50 basis points versus prior year to 36.7 percent as the company made incremental investments in customer programs associated with fourth quarter events and stronger 2013 new item sell-in.
Operating margin for the quarter was 10.1 percent, an increase of 170 basis points compared to the prior year. Normalized operating margin was 11.7 percent, a decrease of 10 basis points to the prior year. Lower structural SG&A costs reflecting the benefits of Project Renewal initiatives were offset by higher incentive compensation, customer programs and strategic SG&A spending on sales force expansion in Tools and Commercial Products in Latin America and Rubbermaid Healthcare in North America, and on increased advertising and promotion expenses in Writing.
Fourth quarter reported operating income was $153.8 million versus $125.5 million in the prior year period, and normalized operating income was $177.8 million compared with $176.8 million in the prior year period. Fourth quarter normalized operating income excludes $24.0 million of restructuring and restructuring-related costs incurred primarily in connection with Project Renewal and the European Transformation Plan. In 2011, normalized operating income excluded $49.4 million of restructuring and restructuring-related costs incurred in connection with the European Transformation Plan and Project Renewal and $1.9 million in incremental costs associated with the company’s CEO transition.
The reported tax rate for the quarter was 23.1 percent compared with 19.6 percent in the prior year. The normalized tax rate was 20.7 percent compared with 23.0 percent in the prior year. The year-over-year change in the normalized tax rate was primarily driven by the geographic mix of earnings and utilization of tax attributes.
Net income, as reported, was $101.9 million, or $0.35 per diluted share, for the fourth quarter. This compares with $80.4 million, or $0.27 per diluted share, in the prior year.
Normalized earnings of $0.43 per diluted share compares with prior year normalized results of $0.40 per diluted share. This 7.5 percent improvement was largely driven by lower interest expense and a lower normalized tax rate.
For the fourth quarter 2012, normalized diluted earnings per share exclude $0.06 per diluted share for restructuring and restructuring-related costs associated with Project Renewal and the European Transformation Plan; $0.01 per diluted share related to the extinguishment of debt; and the exclusion of $0.01 per diluted share resulting from tax contingencies. For the fourth quarter 2011, normalized diluted earnings per share excluded $0.12 per diluted share for restructuring and restructuring-related costs associated with the European Transformation Plan and Project Renewal. (A reconciliation of the “as reported” results to “normalized” results is included below.)
The company generated operating cash flow of $261.3 million during the fourth quarter of 2012 compared with $281.5 million in the comparable period last year. Capital expenditures were $47.0 million compared with $71.7 million in the prior year.
A reconciliation of the fourth quarter 2012 and 2011 results is as follows:
| | | | | | | | | | | Q4 2012 | | | | | Q4 2011* | | | | | | | | | | Diluted earnings per share (as reported) | | $ | 0.35 | | | | | $ | 0.27 | | | | | | | | | | Restructuring and restructuring-related costs | | $ | 0.06 | | | | | $ | 0.12 | | | | | | | | | | | | Income tax – incremental contingencies | | $ | 0.01 | | | | | $ | 0.00 | | | | | | | | | | Loss related to the extinguishment of debt | | $ | 0.01 | | | | | $ | 0.00 | | | | | | | | | | Normalized EPS | | $ | 0.43 | | | | | $ | 0.40 | | | | | | | | | | | | * totals may not add due to rounding | | | | | | | | | | | | | | | | Fourth Quarter 2012 Operating Segment Results
The Home Solutions segment net sales for the fourth quarter were $453.1 million, a 0.8 percent increase compared with the prior year quarter. Core sales in the segment increased 0.5 percent. Growth from the Rubbermaid®, Calphalon®, and Goody® brands was partially offset by a decline in Décor largely related to a change in merchandising strategy at a significant retail customer. Operating income in the Home Solutions segment was $64.8 million, or 14.3 percent of sales, as compared with $57.2 million, or 12.7 percent of sales, in the prior year. Normalized operating income in the Home Solutions segment was $67.7 million, or 14.9 percent of sales, compared with $57.2 million, or 12.7 percent of sales, in the prior year. The improvements were driven by Project Renewal-related structural SG&A cost reductions and improved productivity, which more than offset input cost inflation.
The Writing segment net sales for the fourth quarter were $344.5 million, a 2.0 percent increase compared with the prior year quarter. Core sales in the segment increased 2.4 percent. The improvement was largely driven by strong growth in Latin America attributable to the launch of Paper Mate® InkJoy® in that region and share gains in North America on Paper Mate, Sharpie®, and Expo®. Operating income in Writing was $55.6 million, or 16.1 percent of sales, compared with $55.5 million, or 16.4 percent of sales, in the prior year. The 30 basis point decline was attributable to favorable mix, offset by input cost inflation and advertising and promotion support behind the launch of Sharpie Metallics, Sharpie’s music partnership with One Direction, and the 125th anniversary of Parker.
The Tools segment net sales for the fourth quarter were $209.5 million, a 3.6 percent increase compared with the prior year quarter. Core sales in the segment increased 6.0 percent. The improved performance was driven by strong growth in emerging markets, particularly Latin America. Operating income in the Tools segment was $23.8 million, or 11.4 percent of sales, compared with $30.3 million, or 15.0 percent of sales, in the prior year. Improved productivity was more than offset by unfavorable mix, inflation and ongoing investment in sales force expansion in Latin America and an increase in customer programs.
The Commercial Products segment net sales for the fourth quarter were $188.6 million, a 0.9 percent increase compared with the prior year quarter. Core sales in the segment increased 1.3 percent. The improvement was primarily driven by strong performance in North America, particularly in Rubbermaid Healthcare. Operating income in the Commercial Products segment was $22.0 million, or 11.7 percent of sales, compared with $27.8 million, or 14.9 percent of sales, in the prior year. Favorable productivity was more than offset by ongoing investment in sales capabilities in emerging markets and increased merchandising investment in North America behind the Rubbermaid Commercial Products refuse and recycling businesses.
The Baby & Parenting segment net sales for the fourth quarter were $186.2 million, a 4.2 percent increase compared with the prior year quarter. Core sales in the segment increased 5.9 percent. The improvement was driven by Graco®’s strong share gains in North America and continued robust growth of Aprica® in Japan. Operating income in the Baby & Parenting segment was $12.8 million, or 6.9 percent of sales, compared with $13.5 million, or 7.6 percent of sales, in the prior year. The operating margin decline was driven by increased investments in advertising development and increased merchandising activity associated with sell in of 2013 innovation.
The Specialty segment net sales for the fourth quarter were $136.9 million, a 2.2 percent decrease compared with the prior year quarter. Core sales in the segment decreased 1.3 percent. Growth in the Dymo Office Labeling and Endicia businesses were offset by softness in Mimio® and Shur-line®. Operating income was $20.2 million, or 14.8 percent of sales, compared with $15.3 million, or 10.9 percent of sales, in the prior year. The operating margin improvement was attributable to Project Renewal-related cost reductions, which more than offset input cost inflation.
Twelve Month Results
Net sales for the twelve months ended December 31, 2012, increased 0.6 percent to $5.90 billion, compared with $5.86 billion in the prior year. Core sales increased 2.2 percent after excluding the 1.6 percent impact of unfavorable foreign currency translation. Core sales growth increased 40 basis points sequentially versus the 2011 core growth rate.
Both reported and normalized gross margin increased 20 basis points compared with prior year to 37.8 percent, as productivity gains and pricing more than offset the effect of input cost inflation.
Reported operating margin of 11.0 percent improved 660 basis points largely due to the impact of asset impairment charges in last year’s results. Normalized operating margin increased 10 basis points versus prior year to 12.6 percent.
Normalized earnings were $1.70 per diluted share compared with $1.59 per diluted share in the prior year. Net income, as reported, was $401.3 million, or $1.37 per diluted share. This compares with $125.2 million, or $0.42 per diluted share, in the prior year.
For the twelve months ended December 31, 2012, normalized diluted earnings per share exclude $0.24 per diluted share for restructuring and restructuring-related costs associated with Project Renewal and the European Transformation Plan; income tax charges of $0.08 per diluted share attributable to certain tax contingencies, expiration of statutes of limitation and resolution of tax examinations; $0.02 per diluted share related to the extinguishment of debt; and a net gain of $0.01 per diluted share from discontinued operations primarily related to the receipt of the escrow from the disposal of the hand torch and solder business. For the twelve months ended December 31, 2011, normalized earnings per diluted share exclude $1.03 per diluted share for impairment charges primarily related to goodwill write-downs; $0.24 per diluted share for restructuring and restructuring-related costs associated with the European Transformation Plan and Project Renewal; $0.02 per diluted share related to the incremental costs associated with the company’s CEO transition; $0.01 per diluted share related to the extinguishment of debt; and benefits of $0.17 per diluted share resulting from the reversal of certain tax contingencies due to the expiration of various statutes of limitation. In addition, last year the company recorded a net loss from discontinued operations of $9.4 million, or $0.03 per share, reflecting the income from discontinued operations and loss on disposal of the hand torch and solder business, which was excluded from normalized earnings. (A reconciliation of the “as reported” results to “normalized” results is included below.)
The company generated operating cash flow of $618.5 million during 2012 compared with $561.3 million in 2011. Capital expenditures were $177.2 million compared with $222.9 million in the prior year, principally related to lower expenditures on SAP implementations.
A reconciliation of the twelve months 2012 and 2011 results is as follows:
| | | | | | | | | | | | | | | 2012 | | | | | 2011* | | | | | | | | | | | Diluted earnings per share (as reported) | | $ | 1.37 | | | | | | $ | 0.42 | | | | | | | | | | | | Impairment charges | | $ | 0.00 | | | | | | $ | 1.03 | | | | | | | | | | | | Restructuring and restructuring-related costs | | $ | 0.24 | | | | | | $ | 0.24 | | | | | | | | | | | | Discontinued operations | |
$
|
(0.01
| ) | | | | | $ | 0.03 | | | | | | | | | | | | | |
CEO transition costs
| | $ | 0.00 | | | | | |
$
|
0.02
| | | | | | | | | | | | | | | Income tax– discrete contingencies, | | | | | | | | | | | | | expiration of statutes of limitation and | | | | | | | | | | | | | resolution of examinations | | $ | 0.08 | | | | | |
$
|
(0.17
|
)
| | | | | | | | | | | Loss related to the extinguishment of debt | | $ | 0.02 | | | | | | $ | 0.01 | | | | | | | | | | | | Normalized EPS | | $ | 1.70 | | | | | | $ | 1.59 | | | | | | | | | | | | | |
* totals may not add due to rounding
| | 2013 Outlook
The company’s guidance and key assumptions for the full year 2013 are as follows:
Core sales increase of 2 to 4 percent. Net sales are expected to grow 1 to 3 percent Currency rates are expected to decrease sales by about 100 basis points Normalized operating margin improvement of up to 20 basis points Normalized EPS growth of 5 to 8 percent, or $1.78 to $1.84 The company’s 2013 normalized EPS expectation excludes between $90 and $110 million of restructuring and restructuring-related costs associated with Project Renewal. (A reconciliation to normalized results is included below.) The company is on track to realize cumulative annualized cost savings of approximately $270 to $325 million by the second quarter of 2015 related to Project Renewal, with cumulative annualized savings of $90 to $100 million expected by the first half of 2013. The company intends to reinvest the majority of Project Renewal savings in the business to strengthen brand building and selling capabilities and accelerate growth. Operating cash flow of between $575 and $625 million This operating cash flow guidance includes a U.S. pension plan contribution of approximately $100 million, approximately $50 million higher than the 2012 contribution, and restructuring and restructuring-related cash payments of approximately $70 to $90 million. The company plans to fund capital expenditures of $175 to $200 million during the year. A reconciliation of the 2013 earnings outlook is as follows:
| | | | | | | | | FY 2013 | | | | | | | Diluted earnings per share | | | | $1.54 to $1.60 | | Restructuring and restructuring-related costs | | | | $0.21 to $0.27 | | | | | | | Normalized EPS | | | | $1.78 to $1.84 | | | | | | Conference Call
The company’s fourth quarter 2012 earnings conference call is scheduled for today, February 1, 2013, at 8:30 am ET. To listen to the webcast, use the link provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The webcast will be recorded and made available for replay. A supporting slide presentation will be available under Quarterly Earnings in the Investor Relations section on the company’s Web site.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release is a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
The company uses certain financial measures that are included in this press release and the additional financial information both in explaining its results to stockholders and the investment community and in its internal evaluation and management of its businesses. The company’s management believes that these measures — including those that are “non-GAAP financial measures” — and the information they provide are useful to investors since these measures (a) permit investors to view the company’s performance using the same tools that company management uses to evaluate the company’s past performance, reportable business segments and prospects for future performance and (b) determine certain elements of management’s incentive compensation.
The company’s management believes that core sales, as reflected in the Currency Analysis, is useful to investors because it demonstrates the effect of foreign currency translation on reported sales. The effect of foreign currency translation on reported sales is determined by applying the current year and prior year monthly exchange rates to the local currency sales amounts in the current year period, with the difference in these two amounts being the currency impact from last year to this year and the residual representing changes attributable to core sales. The company’s management believes that normalized gross margin, normalized SG&A expense and normalized operating income are useful because they provide investors with a meaningful perspective on the current underlying performance of the company’s core ongoing operations. The company’s management believes that normalized earnings per share, which excludes restructuring and restructuring-related charges and one-time events such as losses related to the extinguishments of debt, tax benefits and charges, impairment charges, discontinued operations and certain other items, is useful to investors because it permits investors to better understand year-over-year changes in underlying operating performance. The company uses both core sales and normalized earnings per share as two of the three performance criteria in its management cash bonus plan.
The company determined the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.
While the company believes that these non-GAAP financial measures are useful in evaluating the company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.9 billion and a strong portfolio of leading brands, including Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®, Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Rubbermaid Commercial Products® and Aprica®.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
Caution Concerning Forward-Looking Statements
Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, the European Transformation Plan, capital and other expenditures, cash flow, dividends, restructuring and restructuring-related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to successfully implement information technology solutions throughout our organization; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations and those factors listed in the company’s most recently filed Quarterly Report on Form 10-Q and Exhibit 99.1 thereto, filed with the Securities and Exchange Commission.
Newell Rubbermaid Inc.
| | CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | | (in millions, except per share data) | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, | | | | | | | YOY | | | 2012 | | 2011 | | % Change | | | | | | | | | Net sales | | $ | 1,518.8 | | | $ | 1,495.2 | | | 1.6 | % | | Cost of products sold | | | 963.8 | | | | 938.6 | | | | | | | | | | | | GROSS MARGIN | | | 555.0 | | | | 556.6 | | | (0.3 | )% | | % of sales | | | 36.5 | % | | | 37.2 | % | | | | | | | | | | | Selling, general & | | | | | | | | administrative expenses | | | 382.6 | | | | 393.3 | | | (2.7 | )% | | % of sales | | | 25.2 | % | | | 26.3 | % | | | | | | | | | | | Restructuring costs | | | 18.6 | | | | 37.8 | | | | | | | | | | | | OPERATING INCOME | | | 153.8 | | | | 125.5 | | | 22.5 | % | | % of sales | | | 10.1 | % | | | 8.4 | % | | | | | | | | | | | Nonoperating expenses: | | | | | | | | Interest expense, net | | | 17.4 | | | | 21.2 | | | | | Loss on extinguishment of debt | | | 4.1 | | | | - | | | | | Other (income) expense, net | | | (0.2 | ) | | | 2.7 | | | | | | | 21.3 | | | | 23.9 | | | (10.9 | )% | | | | | | | | | INCOME BEFORE INCOME TAXES | | | 132.5 | | | | 101.6 | | | 30.4 | % | | % of sales | | | 8.7 | % | | | 6.8 | % | | | | | | | | | | | Income taxes | | | 30.6 | | | | 19.9 | | | 53.8 | % | | Effective rate | | | 23.1 | % | | | 19.6 | % | | | | | | | | | | | NET INCOME FROM CONTINUING OPERATIONS | | | 101.9 | | | | 81.7 | | | 24.7 | % | | % of sales | | | 6.7 | % | | | 5.5 | % | | | | | | | | | | | Loss from discontinued operations, net of tax | | | - | | | | (1.3 | ) | | | | | | | | | | | NET INCOME | | $ | 101.9 | | | $ | 80.4 | | | 26.7 | % | | | | 6.7 | % | | | 5.4 | % | | | | | | | | | | | EARNINGS PER SHARE: | | | | | | | | Basic | | | | | | | | Income from continuing operations | | $ | 0.35 | | | $ | 0.28 | | | | | Loss from discontinued operations | | | - | | | | - | | | | | Net income | | $ | 0.35 | | | $ | 0.28 | | | | | | | | | | | | Diluted | | | | | | | | Income from continuing operations | | $ | 0.35 | | | $ | 0.28 | | | | | Loss from discontinued operations | | | - | | | | - | | | | | Net income | | $ | 0.35 | | | $ | 0.27 | | | | | | | | | | | | AVERAGE SHARES OUTSTANDING: | | | | | | | | Basic | | | 290.0 | | | | 292.0 | | | | | Diluted | | | 293.1 | | | | 294.4 | | | | | | | | | | | | | | | | Newell Rubbermaid Inc. | | CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | | (in millions, except per share data) | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, | | | | | | | YOY | | | 2012 | | 2011 | | % Change | | | | | | | | | Net sales | | $ | 5,902.7 | | | $ | 5,864.6 | | | 0.6 | % | | Cost of products sold | | | 3,673.6 | | | | 3,659.4 | | | | | | | | | | | | GROSS MARGIN | | | 2,229.1 | | | | 2,205.2 | | | 1.1 | % | | % of sales | | | 37.8 | % | | | 37.6 | % | | | | | | | | | | | Selling, general & | | | | | | | | administrative expenses | | | 1,521.1 | | | | 1,515.3 | | | 0.4 | % | | % of sales | | | 25.8 | % | | | 25.8 | % | | | | | | | | | | | Impairment charges | | | - | | | | 382.6 | | | | | Restructuring costs | | | 56.1 | | | | 50.1 | | | | | | | | | | | | OPERATING INCOME | | | 651.9 | | | | 257.2 | | | NMF | | % of sales | | | 11.0 | % | | | 4.4 | % | | | | | | | | | | | Nonoperating expenses: | | | | | | | | Interest expense, net | | | 76.1 | | | | 86.2 | | | | | Loss on extinguishments of debt | | | 10.9 | | | | 4.8 | | | | | Other (income) expense, net | | | (1.0 | ) | | | 13.7 | | | | | | | 86.0 | | | | 104.7 | | | (17.9 | )% | | | | | | | | | INCOME BEFORE INCOME TAXES | | | 565.9 | | | | 152.5 | | | NMF | | % of sales | | | 9.6 | % | | | 2.6 | % | | | | | | | | | | | Income taxes | | | 166.3 | | | | 17.9 | | | NMF | | Effective rate | | | 29.4 | % | | | 11.7 | % | | | | | | | | | | | NET INCOME FROM CONTINUING OPERATIONS | | | 399.6 | | | | 134.6 | | | NMF | | % of sales | | | 6.8 | % | | | 2.3 | % | | | | | | | | | | | Income (loss) from discontinued operations, net of tax | | | 1.7 | | | | (9.4 | ) | | | | | | | | | | | NET INCOME | | $ | 401.3 | | | $ | 125.2 | | | NMF | | | | 6.8 | % | | | 2.1 | % | | | | | | | | | | | EARNINGS PER SHARE: | | | | | | | | Basic | | | | | | | | Income from continuing operations | | $ | 1.37 | | | $ | 0.46 | | | | | Income (loss) from discontinued operations | | | 0.01 | | | | (0.03 | ) | | | | Net income | | $ | 1.38 | | | $ | 0.43 | | | | | | | | | | | | Diluted | | | | | | | | Income from continuing operations | | $ | 1.36 | | | $ | 0.45 | | | | | Income (loss) from discontinued operations | | | 0.01 | | | | (0.03 | ) | | | | Net income | | $ | 1.37 | | | $ | 0.42 | | | | | | | | | | | | AVERAGE SHARES OUTSTANDING: | | | | | | | | Basic | | | 291.2 | | | | 293.6 | | | | | Diluted | | | 293.6 | | | | 296.2 | | | | | | | | | | | | | | | | | | | NMF = Not meaningful | | | | | | | | | Newell Rubbermaid Inc. | | RECONCILIATION OF GAAP AND NON-GAAP INFORMATION | | CERTAIN LINE ITEMS | | (in millions, except per share data) | | | | | | | | | | | | | | | | Three Months Ended December 31, 2012 | | | GAAP Measure | | Restructuring | | Loss on | | | | Non-GAAP Measure | | | | | and restructuring- | | extinguishment | | Non-recurring | | | | Percentage | | | Reported | | related costs (1) | | of debt (2) | | tax items (3) | | Normalized* | | of Sales | | | | | | | | | | | | | | | Cost of products sold | | $ | 963.8 | | $ | (2.6 | ) | | $ | - | | | $ | - | | | $ | 961.2 | | 63.3 | % | | | | | | | | | | | | | | | Gross margin | | $ | 555.0 | | $ | 2.6 | | | $ | - | | | $ | - | | | $ | 557.6 | | 36.7 | % | | | | | | | | | | | | | | | Selling, general & administrative expenses | | $ | 382.6 | | $ | (2.8 | ) | | $ | - | | | $ | - | | | $ | 379.8 | | 25.0 | % | | | | | | | | | | | | | | | Operating income | | $ | 153.8 | | $ | 24.0 | | | $ | - | | | $ | - | | | $ | 177.8 | | 11.7 | % | | | | | | | | | | | | | | | Nonoperating expenses | | $ | 21.3 | | $ | - | | | $ | (4.1 | ) | | $ | - | | | $ | 17.2 | | | | | | | | | | | | | | | | | Income before income taxes | | $ | 132.5 | | $ | 24.0 | | | $ | 4.1 | | | $ | - | | | $ | 160.6 | | | | | | | | | | | | | | | | | Income taxes (4) | | $ | 30.6 | | $ | 5.0 | | | $ | 1.5 | | | $ | (3.9 | ) | | $ | 33.2 | | | | | | | | | | | | | | | | | Net income | | $ | 101.9 | | $ | 19.0 | | | $ | 2.6 | | | $ | 3.9 | | | $ | 127.4 | | | | | | | | | | | | | | | | | Diluted earnings per share** | | $ | 0.35 | | $ | 0.06 | | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.43 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, 2011 | | | GAAP Measure | | Restructuring | | | | | | Non-GAAP Measure | | | | | and restructuring- | | Discontinued | | CEO transition | | | | Percentage | | | Reported | | related costs (1) | | operations (5) | | costs (6) | | Normalized* | | of Sales | | | | | | | | | | | | | | | Selling, general & administrative expenses | | $ | 393.3 | | $ | (11.6 | ) | | $ | - | | | $ | (1.9 | ) | | $ | 379.8 | | 25.4 | % | | | | | | | | | | | | | | | Operating income | | $ | 125.5 | | $ | 49.4 | | | $ | - | | | $ | 1.9 | | | $ | 176.8 | | 11.8 | % | | | | | | | | | | | | | | | Income before income taxes | | $ | 101.6 | | $ | 49.4 | | | $ | - | | | $ | 1.9 | | | $ | 152.9 | | | | | | | | | | | | | | | | | Income taxes (4) | | $ | 19.9 | | $ | 14.2 | | | $ | - | | | $ | 1.0 | | | $ | 35.1 | | | | | | | | | | | | | | | | | Net income from continuing operations | | $ | 81.7 | | $ | 35.2 | | | $ | - | | | $ | 0.9 | | | $ | 117.8 | | | | | | | | | | | | | | | | | Net income | | $ | 80.4 | | $ | 35.2 | | | $ | 1.3 | | | $ | 0.9 | | | $ | 117.8 | | | | | | | | | | | | | | | | | Diluted earnings per share** | | $ | 0.27 | | $ | 0.12 | | | $ | - | | | $ | - | | | $ | 0.40 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | * Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments. | | **Totals may not add due to rounding. | | | | | | | | | | | | | | | (1) Restructuring and restructuring-related charges during the three months ended December 31, 2012 include $5.4 million of restructuring-related costs and $18.6 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. Restructuring and restructuring-related charges during the three months ended December 31, 2011 include $11.6 million of restructuring-related costs and $37.8 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. | | | | | | | | | | | | | | | (2) Loss on extinguishment of debt of $4.1 million during the three months ended December 31, 2012 was incurred in connection with the early retirement of the April 2013 Senior Notes. | | | | | | | | | | | | | | | (3) During the three months ended December 31, 2012, the Company incurred $3.9 million of non-recurring income tax charges resulting from tax contingencies and the expiration of various statutes of limitation. | | | | | | | | | | | | | | | (4) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. | | | | | | | | | | | | | | | (5) During the three months ended December 31, 2011, the Company recognized a $1.3 million loss in discontinued operations primarily related to the sale of the hand torch and solder business in July 2011. | | | | | | | | | | | | | | | (6) The Company incurred incremental costs of $1.9 million during the quarter ended December 31, 2011 associated with its CEO transition. | | | Newell Rubbermaid Inc. | | | | RECONCILIATION OF GAAP AND NON-GAAP INFORMATION | | | | CERTAIN LINE ITEMS | | | | (in millions, except per share data) | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, 2012 | | | | | | | GAAP Measure | | Restructuring | | Loss on | | | | | | Non-GAAP Measure | | | | | | | | | and restructuring- | | extinguishments | | Non-recurring | | Discontinued | | | | Percentage | | | | | | | Reported | | related costs (1) | | of debt (2) | | tax items (3) | | operations (4) | | Normalized* | | of Sales | | | | | | | | | | | | | | | | | | | | | | | | | Cost of products sold | | $ | 3,673.6 | | $ | (2.6 | ) | | $ | - | | | $ | - | | | $ | - | | | $ | 3,671.0 | | | 62.2 | % | | | | | | | | | | | | | | | | | | | | | | | | | Gross margin | | $ | 2,229.1 | | $ | 2.6 | | | $ | - | | | $ | - | | | $ | - | | | $ | 2,231.7 | | | 37.8 | % | | | | | | | | | | | | | | | | | | | | | | | | | Selling, general & administrative expenses | | $ | 1,521.1 | | $ | (31.9 | ) | | $ | - | | | $ | - | | | $ | - | | | $ | 1,489.2 | | | 25.2 | % | | | | | | | | | | | | | | | | | | | | | | | | | Operating income | | $ | 651.9 | | $ | 90.6 | | | $ | - | | | $ | - | | | $ | - | | | $ | 742.5 | | | 12.6 | % | | | | | | | | | | | | | | | | | | | | | | | | | Nonoperating expenses | | $ | 86.0 | | $ | - | | | $ | (10.9 | ) | | $ | - | | | $ | - | | | $ | 75.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | Income before income taxes | | $ | 565.9 | | $ | 90.6 | | | $ | 10.9 | | | $ | - | | | $ | - | | | $ | 667.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | Income taxes (5) | | $ | 166.3 | | $ | 19.9 | | | $ | 4.0 | | | $ | (23.1 | ) | | $ | - | | | $ | 167.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income from continuing operations | | $ | 399.6 | | $ | 70.7 | | | $ | 6.9 | | | $ | 23.1 | | | $ | - | | | $ | 500.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income | | $ | 401.3 | | $ | 70.7 | | | $ | 6.9 | | | $ | 23.1 | | | $ | (1.7 | ) | | $ | 500.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | Diluted earnings per share** | | $ | 1.37 | | $ | 0.24 | | | $ | 0.02 | | | $ | 0.08 | | | $ | (0.01 | ) | | $ | 1.70 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, 2011 | | | | | GAAP Measure | | Restructuring | | Loss on | | | | | | | | | | Non-GAAP Measure | | | | | and restructuring- | | extinguishments | | Non-recurring | | Discontinued | | Impairment | | CEO transition | | | Percentage | | | Reported | | related costs (1) | | of debt (2) | | tax items (3) | | operations (4) | | charges (6) | | costs (7) | | Normalized* | | of Sales | | | | | | | | | | | | | | | | | | | | | Selling, general & administrative expenses | | $ | 1,515.3 | | $ | (37.4 | ) | | $ | - | | | $ | - | | | $ | - | | | $ | - | | $ | (6.3 | ) | | $ | 1,471.6 | | 25.1 | % | | | | | | | | | | | | | | | | | | | | | Operating income | | $ | 257.2 | | $ | 87.5 | | | $ | - | | | $ | - | | | $ | - | | | $ | 382.6 | | $ | 6.3 | | | $ | 733.6 | | 12.5 | % | | | | | | | | | | | | | | | | | | | | | Nonoperating expenses | | $ | 104.7 | | $ | - | | | $ | (4.8 | ) | | $ | - | | | $ | - | | | $ | - | | $ | - | | | $ | 99.9 | | | | | | | | | | | | | | | | | | | | | | | Income before income taxes | | $ | 152.5 | | $ | 87.5 | | | $ | 4.8 | | | $ | - | | | $ | - | | | $ | 382.6 | | $ | 6.3 | | | $ | 633.7 | | | | | | | | | | | | | | | | | | | | | | | Income taxes (5) | | $ | 17.9 | | $ | 17.0 | | | $ | 1.7 | | | $ | 49.0 | | | $ | - | | | $ | 76.2 | | $ | 1.0 | | | $ | 162.8 | | | | | | | | | | | | | | | | | | | | | | | Net income from continuing operations | | $ | 134.6 | | $ | 70.5 | | | $ | 3.1 | | | $ | (49.0 | ) | | $ | - | | | $ | 306.4 | | $ | 5.3 | | | $ | 470.9 | | | | | | | | | | | | | | | | | | | | | | | Net income | | $ | 125.2 | | $ | 70.5 | | | $ | 3.1 | | | $ | (49.0 | ) | | $ | 9.4 | | | $ | 306.4 | | $ | 5.3 | | | $ | 470.9 | | | | | | | | | | | | | | | | | | | | | | | Diluted earnings per share** | | $ | 0.42 | | $ | 0.24 | | | $ | 0.01 | | | $ | (0.17 | ) | | $ | 0.03 | | | $ | 1.03 | | $ | 0.02 | | | $ | 1.59 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | * Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments. | | **Totals may not add due to rounding. | | | | | | | | | | | | | | | | | | | | | (1) Restructuring and restructuring-related charges during the twelve months ended December 31, 2012 include $34.5 million of restructuring-related costs and $56.1 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. Restructuring and restructuring-related charges during the twelve months ended December 31, 2011 include $37.4 million of restructuring-related costs and $50.1 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. | | | | | | | | | | | | | | | | | | | | | (2) Loss on extinguishments of debt of $10.9 million during the twelve months ended December 31, 2012 primarily represents the costs associated with the early retirement of the junior convertible subordinated debentures underlying the quarterly income preferred securities (QUIPS) and the April 2013 Senior Notes. Loss on extinguishments of debt of $4.8 million during the twelve months ended December 31, 2011 represents costs incurred to exchange substantially all of the remaining convertible notes issued during March 2009 for shares and cash. | | | | | | | | | | | | | | | | | | | | | (3) During the twelve months ended December 31, 2012, the Company incurred $23.1 million of non-recurring income tax charges resulting from tax contingencies and the expiration of various statutes of limitation. During the twelve months ended December 31 2011, the Company recognized $49.0 million of previously unrecognized income tax benefits primarily resulting from the expiration of various statutes of limitation. | | | | | | | | | | | | | | | | | | | | | (4) During the twelve months ended December 31, 2012 and the twelve months ended December 31, 2011, the Company recognized a $1.7 million gain and $9.4 million loss in discontinued operations, respectively, related to the sale of the hand torch and solder business in July 2011. | | | | | | | | | | | | | | | | | | | | | (5) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. | | | | | | | | | | | | | | | | | | | | | (6) During the twelve months ended December 31, 2011, the Company recorded asset impairment charges of $382.6 million primarily related to goodwill impairment for the Baby & Parenting and Hardware businesses. | | | | | | | | | | | | | | | | | | | | | (7) The Company incurred incremental costs of $6.3 million during the twelve months ended December 31, 2011 associated with its CEO transition. | | | Newell Rubbermaid Inc. | | CONSOLIDATED BALANCE SHEETS (UNAUDITED) | | (in millions) | | | | | | | | | | December 31, | | December 31, | | Assets: | | | 2012 | | 2011 | | | | | | | | Cash and cash equivalents | | | $ | 183.8 | | $ | 170.2 | | Accounts receivable, net | | | | 1,112.4 | | | 1,002.0 | | Inventories, net | | | | 696.4 | | | 699.9 | | Deferred income taxes | | | | 135.8 | | | 130.7 | | Prepaid expenses and other | | | | 142.7 | | | 145.2 | | | | | | | | Total Current Assets | | | | 2,271.1 | | | 2,148.0 | | | | | | | | Property, plant and equipment, net | | | | 560.2 | | | 551.4 | | Goodwill | | | | 2,370.2 | | | 2,366.0 | | Other intangible assets, net | | | | 654.1 | | | 666.1 | | Deferred income taxes | | | | 85.2 | | | 120.2 | | Other assets | | | | 281.2 | | | 309.2 | | | | | | | | Total Assets | | | $ | 6,222.0 | | $ | 6,160.9 | | | | | | | | Liabilities and Stockholders' Equity: | | | | | | | | | | | | | Accounts payable | | | $ | 527.4 | | $ | 468.5 | | Accrued compensation | | | | 173.5 | | | 131.4 | | Other accrued liabilities | | | | 658.0 | | | 693.5 | | Short-term debt | | | | 210.7 | | | 103.6 | | Current portion of long-term debt | | | | 1.2 | | | 263.9 | | | | | | | | Total Current Liabilities | | | | 1,570.8 | | | 1,660.9 | | | | | | | | Long-term debt | | | | 1,706.5 | | | 1,809.3 | | Other noncurrent liabilities | | | | 944.5 | | | 838.1 | | | | | | | | Stockholders' Equity - Parent | | | | 1,996.7 | | | 1,849.1 | | Stockholders' Equity - Noncontrolling Interests | | | | 3.5 | | | 3.5 | | | | | | | | Total Stockholders' Equity | | | | 2,000.2 | | | 1,852.6 | | | | | | | | Total Liabilities and Stockholders' Equity | | | $ | 6,222.0 | | $ | 6,160.9 | | | | | | | | | | Newell Rubbermaid Inc. | | CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) | | (in millions) | | | | | | | | Twelve Months Ended December 31, | | | 2012 | | 2011 | | Operating Activities: | | | | | | Net income | | $ | 401.3 | | | $ | 125.2 | | | Adjustments to reconcile net income to net cash provided by | | | | | | operating activities: | | | | | | Depreciation and amortization | | | 163.7 | | | | 161.6 | | | Impairment charges | | | - | | | | 382.6 | | | Loss on extinguishments of debt | | | 10.9 | | | | 4.8 | | | (Gain) loss on disposal of discontinued operations | | | (5.2 | ) | | | 13.9 | | | Non-cash restructuring costs | | | 0.3 | | | | 7.0 | | | Deferred income taxes | | | 71.2 | | | | (4.8 | ) | | Stock-based compensation expense | | | 32.9 | | | | 43.0 | | | Other | | | 12.0 | | | | 11.7 | | | Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: | | | | | | Accounts receivable | | | (101.2 | ) | | | (17.6 | ) | | Inventories | | | 7.7 | | | | (21.5 | ) | | Accounts payable | | | 56.3 | | | | 3.3 | | | Accrued liabilities and other | | | (31.4 | ) | | | (147.9 | ) | | Net cash provided by operating activities | | $ | 618.5 | | | $ | 561.3 | | | | | | | | Investing Activities: | | | | | | Acquisitions and acquisition-related activity | | $ | (26.5 | ) | | $ | (20.0 | ) | | Capital expenditures | | | (177.2 | ) | | | (222.9 | ) | | Proceeds from sales of noncurrent assets | | | 43.5 | | | | 44.3 | | | Other | | | (2.8 | ) | | | (7.8 | ) | | Net cash used in investing activities | | $ | (163.0 | ) | | $ | (206.4 | ) | | | | | | | Financing Activities: | | | | | | Net short-term borrowings | | $ | 106.0 | | | $ | (34.4 | ) | | Proceeds from issuance of debt, net of debt issuance costs | | | 841.9 | | | | 3.3 | | | Payments on and for the settlement of notes payable and debt | | | (1,203.4 | ) | | | (151.0 | ) | | Cash consideration paid to exchange convertible notes | | | - | | | | (3.1 | ) | | Repurchase and retirement of shares of common stock | | | (91.5 | ) | | | (46.1 | ) | | Cash dividends | | | (125.9 | ) | | | (84.9 | ) | | Excess tax benefits related to stock-based compensation | | | 12.7 | | | | - | | | Other, net | | | 14.2 | | | | (8.4 | ) | | Net cash used in financing activities | | $ | (446.0 | ) | | $ | (324.6 | ) | | | | | | | Currency rate effect on cash and cash equivalents | | $ | 4.1 | | | $ | 0.3 | | | | | | | | Increase in cash and cash equivalents | | $ | 13.6 | | | $ | 30.6 | | | Cash and cash equivalents at beginning of year | | | 170.2 | | | | 139.6 | | | Cash and cash equivalents at end of year | | $ | 183.8 | | | $ | 170.2 | | | | | | | %5 |
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| From: Dr_of_Microcaps | 2/2/2013 1:34:24 AM | | | | | |
Newell Rubbermaid Reports Solid Fourth Quarter 2012 Results and Provides 2013 Guidance Normalized EPS of $0.43, up 7.5 Percent vs. Prior Year Reported EPS of $0.35, up 29.6 Percent vs. Prior Year Press Release: Newell Rubbermaid Inc. – 18 hours ago
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ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid ( NWL) today announced solid fourth quarter 2012 results.
“We are pleased with our quarterly and full year 2012 performance,” said President and Chief Executive Officer Michael Polk. “Our solid fourth quarter financial results represent the sixth consecutive quarter of consistent delivery in line with or better than expectations. Full year normalized EPS and operating cash flow both came in above the high end of our guidance range. We increased core sales by 2.2%, a sequential improvement versus last year, and a solid outcome in the face of tough economic conditions in Europe and challenges in our Décor business. Our Win Bigger brands have healthy share momentum and we are generating strong core sales growth in emerging markets, particularly in Latin America. We also returned significant levels of cash to shareholders through our dividend, which nearly doubled in 2012 to the current annualized rate of $0.60, and our ongoing share repurchase program.”
Polk added, “Looking ahead, we continue to be sharply focused on driving structural costs out and accelerating growth through the execution of our Growth Game Plan. The strategic changes we are making to invest behind our Win Bigger businesses will drive accelerated performance and enable us to build a bigger, faster-growing, more global and more profitable Newell Rubbermaid.”
Executive Summary
Fourth quarter 2012 net sales were $1.52 billion, an increase of 1.6 percent versus prior year results. Core sales, which exclude the impact of changes in foreign currency translation, grew 2.2 percent. Normalized diluted earnings per share were $0.43 compared with $0.40 in the prior year period; reported diluted earnings per share were $0.35 compared with $0.27 in the year-ago period. Operating cash flow in the quarter was $261.3 million. Full year 2012 operating cash flow was $618.5 million, an improvement of $57.2 million versus prior year. The company returned $67.8 million to shareholders in the fourth quarter through dividends of $43.5 million and the repurchase of 1.1 million shares at a cost of $24.3 million. The company strengthened its balance sheet and reduced ongoing interest expense through the early repayment of $500 million in 5.5% notes due April 2013. The debt was refinanced through the issuance of $350 million in 2.05% notes due 2017, cash on hand and short-term borrowings. The company provided 2013 guidance for core sales growth in a range from 2 to 4 percent, normalized operating margin improvement of up to 20 basis points, normalized earnings per share of $1.78 to $1.84 and operating cash flow of $575 to $625 million, which includes an incremental pension plan contribution of $50 million. Fourth Quarter 2012 Operating Results
Net sales in the fourth quarter were $1.52 billion, an increase of 1.6 percent compared with the prior year. Core sales, which exclude 60 basis points of adverse foreign currency translation, grew 2.2 percent. Sales growth was largely attributable to the Tools, Baby & Parenting and Writing segments and to robust growth in Latin America.
As expected, gross margin of 36.5 percent represented a decline of 70 basis points versus prior year. Normalized gross margin decreased 50 basis points versus prior year to 36.7 percent as the company made incremental investments in customer programs associated with fourth quarter events and stronger 2013 new item sell-in.
Operating margin for the quarter was 10.1 percent, an increase of 170 basis points compared to the prior year. Normalized operating margin was 11.7 percent, a decrease of 10 basis points to the prior year. Lower structural SG&A costs reflecting the benefits of Project Renewal initiatives were offset by higher incentive compensation, customer programs and strategic SG&A spending on sales force expansion in Tools and Commercial Products in Latin America and Rubbermaid Healthcare in North America, and on increased advertising and promotion expenses in Writing.
Fourth quarter reported operating income was $153.8 million versus $125.5 million in the prior year period, and normalized operating income was $177.8 million compared with $176.8 million in the prior year period. Fourth quarter normalized operating income excludes $24.0 million of restructuring and restructuring-related costs incurred primarily in connection with Project Renewal and the European Transformation Plan. In 2011, normalized operating income excluded $49.4 million of restructuring and restructuring-related costs incurred in connection with the European Transformation Plan and Project Renewal and $1.9 million in incremental costs associated with the company’s CEO transition.
The reported tax rate for the quarter was 23.1 percent compared with 19.6 percent in the prior year. The normalized tax rate was 20.7 percent compared with 23.0 percent in the prior year. The year-over-year change in the normalized tax rate was primarily driven by the geographic mix of earnings and utilization of tax attributes.
Net income, as reported, was $101.9 million, or $0.35 per diluted share, for the fourth quarter. This compares with $80.4 million, or $0.27 per diluted share, in the prior year.
Normalized earnings of $0.43 per diluted share compares with prior year normalized results of $0.40 per diluted share. This 7.5 percent improvement was largely driven by lower interest expense and a lower normalized tax rate.
For the fourth quarter 2012, normalized diluted earnings per share exclude $0.06 per diluted share for restructuring and restructuring-related costs associated with Project Renewal and the European Transformation Plan; $0.01 per diluted share related to the extinguishment of debt; and the exclusion of $0.01 per diluted share resulting from tax contingencies. For the fourth quarter 2011, normalized diluted earnings per share excluded $0.12 per diluted share for restructuring and restructuring-related costs associated with the European Transformation Plan and Project Renewal. (A reconciliation of the “as reported” results to “normalized” results is included below.)
The company generated operating cash flow of $261.3 million during the fourth quarter of 2012 compared with $281.5 million in the comparable period last year. Capital expenditures were $47.0 million compared with $71.7 million in the prior year.
A reconciliation of the fourth quarter 2012 and 2011 results is as follows:
| | | | | | | | | | | Q4 2012 | | | | | Q4 2011* | | | | | | | | | | Diluted earnings per share (as reported) | | $ | 0.35 | | | | | $ | 0.27 | | | | | | | | | | Restructuring and restructuring-related costs | | $ | 0.06 | | | | | $ | 0.12 | | | | | | | | | | | | Income tax – incremental contingencies | | $ | 0.01 | | | | | $ | 0.00 | | | | | | | | | | Loss related to the extinguishment of debt | | $ | 0.01 | | | | | $ | 0.00 | | | | | | | | | | Normalized EPS | | $ | 0.43 | | | | | $ | 0.40 | | | | | | | | | | | | * totals may not add due to rounding | | | | | | | | | | | | | | | | Fourth Quarter 2012 Operating Segment Results
The Home Solutions segment net sales for the fourth quarter were $453.1 million, a 0.8 percent increase compared with the prior year quarter. Core sales in the segment increased 0.5 percent. Growth from the Rubbermaid®, Calphalon®, and Goody® brands was partially offset by a decline in Décor largely related to a change in merchandising strategy at a significant retail customer. Operating income in the Home Solutions segment was $64.8 million, or 14.3 percent of sales, as compared with $57.2 million, or 12.7 percent of sales, in the prior year. Normalized operating income in the Home Solutions segment was $67.7 million, or 14.9 percent of sales, compared with $57.2 million, or 12.7 percent of sales, in the prior year. The improvements were driven by Project Renewal-related structural SG&A cost reductions and improved productivity, which more than offset input cost inflation.
The Writing segment net sales for the fourth quarter were $344.5 million, a 2.0 percent increase compared with the prior year quarter. Core sales in the segment increased 2.4 percent. The improvement was largely driven by strong growth in Latin America attributable to the launch of Paper Mate® InkJoy® in that region and share gains in North America on Paper Mate, Sharpie®, and Expo®. Operating income in Writing was $55.6 million, or 16.1 percent of sales, compared with $55.5 million, or 16.4 percent of sales, in the prior year. The 30 basis point decline was attributable to favorable mix, offset by input cost inflation and advertising and promotion support behind the launch of Sharpie Metallics, Sharpie’s music partnership with One Direction, and the 125th anniversary of Parker.
The Tools segment net sales for the fourth quarter were $209.5 million, a 3.6 percent increase compared with the prior year quarter. Core sales in the segment increased 6.0 percent. The improved performance was driven by strong growth in emerging markets, particularly Latin America. Operating income in the Tools segment was $23.8 million, or 11.4 percent of sales, compared with $30.3 million, or 15.0 percent of sales, in the prior year. Improved productivity was more than offset by unfavorable mix, inflation and ongoing investment in sales force expansion in Latin America and an increase in customer programs.
The Commercial Products segment net sales for the fourth quarter were $188.6 million, a 0.9 percent increase compared with the prior year quarter. Core sales in the segment increased 1.3 percent. The improvement was primarily driven by strong performance in North America, particularly in Rubbermaid Healthcare. Operating income in the Commercial Products segment was $22.0 million, or 11.7 percent of sales, compared with $27.8 million, or 14.9 percent of sales, in the prior year. Favorable productivity was more than offset by ongoing investment in sales capabilities in emerging markets and increased merchandising investment in North America behind the Rubbermaid Commercial Products refuse and recycling businesses.
The Baby & Parenting segment net sales for the fourth quarter were $186.2 million, a 4.2 percent increase compared with the prior year quarter. Core sales in the segment increased 5.9 percent. The improvement was driven by Graco®’s strong share gains in North America and continued robust growth of Aprica® in Japan. Operating income in the Baby & Parenting segment was $12.8 million, or 6.9 percent of sales, compared with $13.5 million, or 7.6 percent of sales, in the prior year. The operating margin decline was driven by increased investments in advertising development and increased merchandising activity associated with sell in of 2013 innovation.
The Specialty segment net sales for the fourth quarter were $136.9 million, a 2.2 percent decrease compared with the prior year quarter. Core sales in the segment decreased 1.3 percent. Growth in the Dymo Office Labeling and Endicia businesses were offset by softness in Mimio® and Shur-line®. Operating income was $20.2 million, or 14.8 percent of sales, compared with $15.3 million, or 10.9 percent of sales, in the prior year. The operating margin improvement was attributable to Project Renewal-related cost reductions, which more than offset input cost inflation.
Twelve Month Results
Net sales for the twelve months ended December 31, 2012, increased 0.6 percent to $5.90 billion, compared with $5.86 billion in the prior year. Core sales increased 2.2 percent after excluding the 1.6 percent impact of unfavorable foreign currency translation. Core sales growth increased 40 basis points sequentially versus the 2011 core growth rate.
Both reported and normalized gross margin increased 20 basis points compared with prior year to 37.8 percent, as productivity gains and pricing more than offset the effect of input cost inflation.
Reported operating margin of 11.0 percent improved 660 basis points largely due to the impact of asset impairment charges in last year’s results. Normalized operating margin increased 10 basis points versus prior year to 12.6 percent.
Normalized earnings were $1.70 per diluted share compared with $1.59 per diluted share in the prior year. Net income, as reported, was $401.3 million, or $1.37 per diluted share. This compares with $125.2 million, or $0.42 per diluted share, in the prior year.
For the twelve months ended December 31, 2012, normalized diluted earnings per share exclude $0.24 per diluted share for restructuring and restructuring-related costs associated with Project Renewal and the European Transformation Plan; income tax charges of $0.08 per diluted share attributable to certain tax contingencies, expiration of statutes of limitation and resolution of tax examinations; $0.02 per diluted share related to the extinguishment of debt; and a net gain of $0.01 per diluted share from discontinued operations primarily related to the receipt of the escrow from the disposal of the hand torch and solder business. For the twelve months ended December 31, 2011, normalized earnings per diluted share exclude $1.03 per diluted share for impairment charges primarily related to goodwill write-downs; $0.24 per diluted share for restructuring and restructuring-related costs associated with the European Transformation Plan and Project Renewal; $0.02 per diluted share related to the incremental costs associated with the company’s CEO transition; $0.01 per diluted share related to the extinguishment of debt; and benefits of $0.17 per diluted share resulting from the reversal of certain tax contingencies due to the expiration of various statutes of limitation. In addition, last year the company recorded a net loss from discontinued operations of $9.4 million, or $0.03 per share, reflecting the income from discontinued operations and loss on disposal of the hand torch and solder business, which was excluded from normalized earnings. (A reconciliation of the “as reported” results to “normalized” results is included below.)
The company generated operating cash flow of $618.5 million during 2012 compared with $561.3 million in 2011. Capital expenditures were $177.2 million compared with $222.9 million in the prior year, principally related to lower expenditures on SAP implementations.
A reconciliation of the twelve months 2012 and 2011 results is as follows:
| | | | | | | | | | | | | | | 2012 | | | | | 2011* | | | | | | | | | | | Diluted earnings per share (as reported) | | $ | 1.37 | | | | | | $ | 0.42 | | | | | | | | | | | | Impairment charges | | $ | 0.00 | | | | | | $ | 1.03 | | | | | | | | | | | | Restructuring and restructuring-related costs | | $ | 0.24 | | | | | | $ | 0.24 | | | | | | | | | | | | Discontinued operations | |
$
|
(0.01
| ) | | | | | $ | 0.03 | | | | | | | | | | | | | |
CEO transition costs
| | $ | 0.00 | | | | | |
$
|
0.02
| | | | | | | | | | | | | | | Income tax– discrete contingencies, | | | | | | | | | | | | | expiration of statutes of limitation and | | | | | | | | | | | | | resolution of examinations | | $ | 0.08 | | | | | |
$
|
(0.17
|
)
| | | | | | | | | | | Loss related to the extinguishment of debt | | $ | 0.02 | | | | | | $ | 0.01 | | | | | | | | | | | | Normalized EPS | | $ | 1.70 | | | | | | $ | 1.59 | | | | | | | | | | | | | |
* totals may not add due to rounding
| | 2013 Outlook
The company’s guidance and key assumptions for the full year 2013 are as follows:
Core sales increase of 2 to 4 percent. Net sales are expected to grow 1 to 3 percent Currency rates are expected to decrease sales by about 100 basis points Normalized operating margin improvement of up to 20 basis points Normalized EPS growth of 5 to 8 percent, or $1.78 to $1.84 The company’s 2013 normalized EPS expectation excludes between $90 and $110 million of restructuring and restructuring-related costs associated with Project Renewal. (A reconciliation to normalized results is included below.) The company is on track to realize cumulative annualized cost savings of approximately $270 to $325 million by the second quarter of 2015 related to Project Renewal, with cumulative annualized savings of $90 to $100 million expected by the first half of 2013. The company intends to reinvest the majority of Project Renewal savings in the business to strengthen brand building and selling capabilities and accelerate growth. Operating cash flow of between $575 and $625 million This operating cash flow guidance includes a U.S. pension plan contribution of approximately $100 million, approximately $50 million higher than the 2012 contribution, and restructuring and restructuring-related cash payments of approximately $70 to $90 million. The company plans to fund capital expenditures of $175 to $200 million during the year. A reconciliation of the 2013 earnings outlook is as follows:
| | | | | | | | | FY 2013 | | | | | | | Diluted earnings per share | | | | $1.54 to $1.60 | | Restructuring and restructuring-related costs | | | | $0.21 to $0.27 | | | | | | | Normalized EPS | | | | $1.78 to $1.84 | | | | | | Conference Call
The company’s fourth quarter 2012 earnings conference call is scheduled for today, February 1, 2013, at 8:30 am ET. To listen to the webcast, use the link provided under Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The webcast will be recorded and made available for replay. A supporting slide presentation will be available under Quarterly Earnings in the Investor Relations section on the company’s Web site.
Non-GAAP Financial Measures
This release contains non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included in this release is a reconciliation of these non-GAAP financial measures to the most directly comparable financial measures calculated in accordance with GAAP.
The company uses certain financial measures that are included in this press release and the additional financial information both in explaining its results to stockholders and the investment community and in its internal evaluation and management of its businesses. The company’s management believes that these measures — including those that are “non-GAAP financial measures” — and the information they provide are useful to investors since these measures (a) permit investors to view the company’s performance using the same tools that company management uses to evaluate the company’s past performance, reportable business segments and prospects for future performance and (b) determine certain elements of management’s incentive compensation.
The company’s management believes that core sales, as reflected in the Currency Analysis, is useful to investors because it demonstrates the effect of foreign currency translation on reported sales. The effect of foreign currency translation on reported sales is determined by applying the current year and prior year monthly exchange rates to the local currency sales amounts in the current year period, with the difference in these two amounts being the currency impact from last year to this year and the residual representing changes attributable to core sales. The company’s management believes that normalized gross margin, normalized SG&A expense and normalized operating income are useful because they provide investors with a meaningful perspective on the current underlying performance of the company’s core ongoing operations. The company’s management believes that normalized earnings per share, which excludes restructuring and restructuring-related charges and one-time events such as losses related to the extinguishments of debt, tax benefits and charges, impairment charges, discontinued operations and certain other items, is useful to investors because it permits investors to better understand year-over-year changes in underlying operating performance. The company uses both core sales and normalized earnings per share as two of the three performance criteria in its management cash bonus plan.
The company determined the tax effect of the items excluded from normalized diluted earnings per share by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected.
While the company believes that these non-GAAP financial measures are useful in evaluating the company’s performance, this information should be considered as supplemental in nature and not as a substitute for or superior to the related financial information prepared in accordance with GAAP. Additionally, these non-GAAP financial measures may differ from similar measures presented by other companies.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.9 billion and a strong portfolio of leading brands, including Rubbermaid®, Sharpie®, Graco®, Calphalon®, Irwin®, Lenox®, Levolor®, Paper Mate®, Dymo®, Waterman®, Parker®, Goody®, Rubbermaid Commercial Products® and Aprica®.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
Caution Concerning Forward-Looking Statements
Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects of sales, income/(loss), earnings per share, operating income, operating margin or gross margin improvements or declines, Project Renewal, the European Transformation Plan, capital and other expenditures, cash flow, dividends, restructuring and restructuring-related costs, costs and cost savings, inflation or deflation, particularly with respect to commodities such as oil and resin, debt ratings, and management's plans, projections and objectives for future operations and performance. These statements are accompanied by words such as "anticipate," "expect," "project," "will," "believe," "estimate" and similar expressions. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy in light of the continuation or escalation of the global economic slowdown or regional sovereign debt issues; currency fluctuations; competition with other manufacturers and distributors of consumer products; major retailers' strong bargaining power; changes in the prices of raw materials and sourced products and our ability to obtain raw materials and sourced products in a timely manner from suppliers; our ability to develop innovative new products and to develop, maintain and strengthen our end-user brands; our ability to expeditiously close facilities and move operations while managing foreign regulations and other impediments; our ability to successfully implement information technology solutions throughout our organization; our ability to improve productivity and streamline operations; changes to our credit ratings; significant increases in the funding obligations related to our pension plans due to declining asset values, declining interest rates or otherwise; the imposition of tax liabilities greater than our provisions for such matters; the risks inherent in our foreign operations and those factors listed in the company’s most recently filed Quarterly Report on Form 10-Q and Exhibit 99.1 thereto, filed with the Securities and Exchange Commission.
Newell Rubbermaid Inc.
| | CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | | (in millions, except per share data) | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, | | | | | | | YOY | | | 2012 | | 2011 | | % Change | | | | | | | | | Net sales | | $ | 1,518.8 | | | $ | 1,495.2 | | | 1.6 | % | | Cost of products sold | | | 963.8 | | | | 938.6 | | | | | | | | | | | | GROSS MARGIN | | | 555.0 | | | | 556.6 | | | (0.3 | )% | | % of sales | | | 36.5 | % | | | 37.2 | % | | | | | | | | | | | Selling, general & | | | | | | | | administrative expenses | | | 382.6 | | | | 393.3 | | | (2.7 | )% | | % of sales | | | 25.2 | % | | | 26.3 | % | | | | | | | | | | | Restructuring costs | | | 18.6 | | | | 37.8 | | | | | | | | | | | | OPERATING INCOME | | | 153.8 | | | | 125.5 | | | 22.5 | % | | % of sales | | | 10.1 | % | | | 8.4 | % | | | | | | | | | | | Nonoperating expenses: | | | | | | | | Interest expense, net | | | 17.4 | | | | 21.2 | | | | | Loss on extinguishment of debt | | | 4.1 | | | | - | | | | | Other (income) expense, net | | | (0.2 | ) | | | 2.7 | | | | | | | 21.3 | | | | 23.9 | | | (10.9 | )% | | | | | | | | | INCOME BEFORE INCOME TAXES | | | 132.5 | | | | 101.6 | | | 30.4 | % | | % of sales | | | 8.7 | % | | | 6.8 | % | | | | | | | | | | | Income taxes | | | 30.6 | | | | 19.9 | | | 53.8 | % | | Effective rate | | | 23.1 | % | | | 19.6 | % | | | | | | | | | | | NET INCOME FROM CONTINUING OPERATIONS | | | 101.9 | | | | 81.7 | | | 24.7 | % | | % of sales | | | 6.7 | % | | | 5.5 | % | | | | | | | | | | | Loss from discontinued operations, net of tax | | | - | | | | (1.3 | ) | | | | | | | | | | | NET INCOME | | $ | 101.9 | | | $ | 80.4 | | | 26.7 | % | | | | 6.7 | % | | | 5.4 | % | | | | | | | | | | | EARNINGS PER SHARE: | | | | | | | | Basic | | | | | | | | Income from continuing operations | | $ | 0.35 | | | $ | 0.28 | | | | | Loss from discontinued operations | | | - | | | | - | | | | | Net income | | $ | 0.35 | | | $ | 0.28 | | | | | | | | | | | | Diluted | | | | | | | | Income from continuing operations | | $ | 0.35 | | | $ | 0.28 | | | | | Loss from discontinued operations | | | - | | | | - | | | | | Net income | | $ | 0.35 | | | $ | 0.27 | | | | | | | | | | | | AVERAGE SHARES OUTSTANDING: | | | | | | | | Basic | | | 290.0 | | | | 292.0 | | | | | Diluted | | | 293.1 | | | | 294.4 | | | | | | | | | | | | | | | | Newell Rubbermaid Inc. | | CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) | | (in millions, except per share data) | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, | | | | | | | YOY | | | 2012 | | 2011 | | % Change | | | | | | | | | Net sales | | $ | 5,902.7 | | | $ | 5,864.6 | | | 0.6 | % | | Cost of products sold | | | 3,673.6 | | | | 3,659.4 | | | | | | | | | | | | GROSS MARGIN | | | 2,229.1 | | | | 2,205.2 | | | 1.1 | % | | % of sales | | | 37.8 | % | | | 37.6 | % | | | | | | | | | | | Selling, general & | | | | | | | | administrative expenses | | | 1,521.1 | | | | 1,515.3 | | | 0.4 | % | | % of sales | | | 25.8 | % | | | 25.8 | % | | | | | | | | | | | Impairment charges | | | - | | | | 382.6 | | | | | Restructuring costs | | | 56.1 | | | | 50.1 | | | | | | | | | | | | OPERATING INCOME | | | 651.9 | | | | 257.2 | | | NMF | | % of sales | | | 11.0 | % | | | 4.4 | % | | | | | | | | | | | Nonoperating expenses: | | | | | | | | Interest expense, net | | | 76.1 | | | | 86.2 | | | | | Loss on extinguishments of debt | | | 10.9 | | | | 4.8 | | | | | Other (income) expense, net | | | (1.0 | ) | | | 13.7 | | | | | | | 86.0 | | | | 104.7 | | | (17.9 | )% | | | | | | | | | INCOME BEFORE INCOME TAXES | | | 565.9 | | | | 152.5 | | | NMF | | % of sales | | | 9.6 | % | | | 2.6 | % | | | | | | | | | | | Income taxes | | | 166.3 | | | | 17.9 | | | NMF | | Effective rate | | | 29.4 | % | | | 11.7 | % | | | | | | | | | | | NET INCOME FROM CONTINUING OPERATIONS | | | 399.6 | | | | 134.6 | | | NMF | | % of sales | | | 6.8 | % | | | 2.3 | % | | | | | | | | | | | Income (loss) from discontinued operations, net of tax | | | 1.7 | | | | (9.4 | ) | | | | | | | | | | | NET INCOME | | $ | 401.3 | | | $ | 125.2 | | | NMF | | | | 6.8 | % | | | 2.1 | % | | | | | | | | | | | EARNINGS PER SHARE: | | | | | | | | Basic | | | | | | | | Income from continuing operations | | $ | 1.37 | | | $ | 0.46 | | | | | Income (loss) from discontinued operations | | | 0.01 | | | | (0.03 | ) | | | | Net income | | $ | 1.38 | | | $ | 0.43 | | | | | | | | | | | | Diluted | | | | | | | | Income from continuing operations | | $ | 1.36 | | | $ | 0.45 | | | | | Income (loss) from discontinued operations | | | 0.01 | | | | (0.03 | ) | | | | Net income | | $ | 1.37 | | | $ | 0.42 | | | | | | | | | | | | AVERAGE SHARES OUTSTANDING: | | | | | | | | Basic | | | 291.2 | | | | 293.6 | | | | | Diluted | | | 293.6 | | | | 296.2 | | | | | | | | | | | | | | | | | | | NMF = Not meaningful | | | | | | | | | Newell Rubbermaid Inc. | | RECONCILIATION OF GAAP AND NON-GAAP INFORMATION | | CERTAIN LINE ITEMS | | (in millions, except per share data) | | | | | | | | | | | | | | | | Three Months Ended December 31, 2012 | | | GAAP Measure | | Restructuring | | Loss on | | | | Non-GAAP Measure | | | | | and restructuring- | | extinguishment | | Non-recurring | | | | Percentage | | | Reported | | related costs (1) | | of debt (2) | | tax items (3) | | Normalized* | | of Sales | | | | | | | | | | | | | | | Cost of products sold | | $ | 963.8 | | $ | (2.6 | ) | | $ | - | | | $ | - | | | $ | 961.2 | | 63.3 | % | | | | | | | | | | | | | | | Gross margin | | $ | 555.0 | | $ | 2.6 | | | $ | - | | | $ | - | | | $ | 557.6 | | 36.7 | % | | | | | | | | | | | | | | | Selling, general & administrative expenses | | $ | 382.6 | | $ | (2.8 | ) | | $ | - | | | $ | - | | | $ | 379.8 | | 25.0 | % | | | | | | | | | | | | | | | Operating income | | $ | 153.8 | | $ | 24.0 | | | $ | - | | | $ | - | | | $ | 177.8 | | 11.7 | % | | | | | | | | | | | | | | | Nonoperating expenses | | $ | 21.3 | | $ | - | | | $ | (4.1 | ) | | $ | - | | | $ | 17.2 | | | | | | | | | | | | | | | | | Income before income taxes | | $ | 132.5 | | $ | 24.0 | | | $ | 4.1 | | | $ | - | | | $ | 160.6 | | | | | | | | | | | | | | | | | Income taxes (4) | | $ | 30.6 | | $ | 5.0 | | | $ | 1.5 | | | $ | (3.9 | ) | | $ | 33.2 | | | | | | | | | | | | | | | | | Net income | | $ | 101.9 | | $ | 19.0 | | | $ | 2.6 | | | $ | 3.9 | | | $ | 127.4 | | | | | | | | | | | | | | | | | Diluted earnings per share** | | $ | 0.35 | | $ | 0.06 | | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.43 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended December 31, 2011 | | | GAAP Measure | | Restructuring | | | | | | Non-GAAP Measure | | | | | and restructuring- | | Discontinued | | CEO transition | | | | Percentage | | | Reported | | related costs (1) | | operations (5) | | costs (6) | | Normalized* | | of Sales | | | | | | | | | | | | | | | Selling, general & administrative expenses | | $ | 393.3 | | $ | (11.6 | ) | | $ | - | | | $ | (1.9 | ) | | $ | 379.8 | | 25.4 | % | | | | | | | | | | | | | | | Operating income | | $ | 125.5 | | $ | 49.4 | | | $ | - | | | $ | 1.9 | | | $ | 176.8 | | 11.8 | % | | | | | | | | | | | | | | | Income before income taxes | | $ | 101.6 | | $ | 49.4 | | | $ | - | | | $ | 1.9 | | | $ | 152.9 | | | | | | | | | | | | | | | | | Income taxes (4) | | $ | 19.9 | | $ | 14.2 | | | $ | - | | | $ | 1.0 | | | $ | 35.1 | | | | | | | | | | | | | | | | | Net income from continuing operations | | $ | 81.7 | | $ | 35.2 | | | $ | - | | | $ | 0.9 | | | $ | 117.8 | | | | | | | | | | | | | | | | | Net income | | $ | 80.4 | | $ | 35.2 | | | $ | 1.3 | | | $ | 0.9 | | | $ | 117.8 | | | | | | | | | | | | | | | | | Diluted earnings per share** | | $ | 0.27 | | $ | 0.12 | | | $ | - | | | $ | - | | | $ | 0.40 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | * Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments. | | **Totals may not add due to rounding. | | | | | | | | | | | | | | | (1) Restructuring and restructuring-related charges during the three months ended December 31, 2012 include $5.4 million of restructuring-related costs and $18.6 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. Restructuring and restructuring-related charges during the three months ended December 31, 2011 include $11.6 million of restructuring-related costs and $37.8 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. | | | | | | | | | | | | | | | (2) Loss on extinguishment of debt of $4.1 million during the three months ended December 31, 2012 was incurred in connection with the early retirement of the April 2013 Senior Notes. | | | | | | | | | | | | | | | (3) During the three months ended December 31, 2012, the Company incurred $3.9 million of non-recurring income tax charges resulting from tax contingencies and the expiration of various statutes of limitation. | | | | | | | | | | | | | | | (4) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. | | | | | | | | | | | | | | | (5) During the three months ended December 31, 2011, the Company recognized a $1.3 million loss in discontinued operations primarily related to the sale of the hand torch and solder business in July 2011. | | | | | | | | | | | | | | | (6) The Company incurred incremental costs of $1.9 million during the quarter ended December 31, 2011 associated with its CEO transition. | | | Newell Rubbermaid Inc. | | | | RECONCILIATION OF GAAP AND NON-GAAP INFORMATION | | | | CERTAIN LINE ITEMS | | | | (in millions, except per share data) | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, 2012 | | | | | | | GAAP Measure | | Restructuring | | Loss on | | | | | | Non-GAAP Measure | | | | | | | | | and restructuring- | | extinguishments | | Non-recurring | | Discontinued | | | | Percentage | | | | | | | Reported | | related costs (1) | | of debt (2) | | tax items (3) | | operations (4) | | Normalized* | | of Sales | | | | | | | | | | | | | | | | | | | | | | | | | Cost of products sold | | $ | 3,673.6 | | $ | (2.6 | ) | | $ | - | | | $ | - | | | $ | - | | | $ | 3,671.0 | | | 62.2 | % | | | | | | | | | | | | | | | | | | | | | | | | | Gross margin | | $ | 2,229.1 | | $ | 2.6 | | | $ | - | | | $ | - | | | $ | - | | | $ | 2,231.7 | | | 37.8 | % | | | | | | | | | | | | | | | | | | | | | | | | | Selling, general & administrative expenses | | $ | 1,521.1 | | $ | (31.9 | ) | | $ | - | | | $ | - | | | $ | - | | | $ | 1,489.2 | | | 25.2 | % | | | | | | | | | | | | | | | | | | | | | | | | | Operating income | | $ | 651.9 | | $ | 90.6 | | | $ | - | | | $ | - | | | $ | - | | | $ | 742.5 | | | 12.6 | % | | | | | | | | | | | | | | | | | | | | | | | | | Nonoperating expenses | | $ | 86.0 | | $ | - | | | $ | (10.9 | ) | | $ | - | | | $ | - | | | $ | 75.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | Income before income taxes | | $ | 565.9 | | $ | 90.6 | | | $ | 10.9 | | | $ | - | | | $ | - | | | $ | 667.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | Income taxes (5) | | $ | 166.3 | | $ | 19.9 | | | $ | 4.0 | | | $ | (23.1 | ) | | $ | - | | | $ | 167.1 | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income from continuing operations | | $ | 399.6 | | $ | 70.7 | | | $ | 6.9 | | | $ | 23.1 | | | $ | - | | | $ | 500.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | Net income | | $ | 401.3 | | $ | 70.7 | | | $ | 6.9 | | | $ | 23.1 | | | $ | (1.7 | ) | | $ | 500.3 | | | | | | | | | | | | | | | | | | | | | | | | | | | Diluted earnings per share** | | $ | 1.37 | | $ | 0.24 | | | $ | 0.02 | | | $ | 0.08 | | | $ | (0.01 | ) | | $ | 1.70 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Twelve Months Ended December 31, 2011 | | | | | GAAP Measure | | Restructuring | | Loss on | | | | | | | | | | Non-GAAP Measure | | | | | and restructuring- | | extinguishments | | Non-recurring | | Discontinued | | Impairment | | CEO transition | | | Percentage | | | Reported | | related costs (1) | | of debt (2) | | tax items (3) | | operations (4) | | charges (6) | | costs (7) | | Normalized* | | of Sales | | | | | | | | | | | | | | | | | | | | | Selling, general & administrative expenses | | $ | 1,515.3 | | $ | (37.4 | ) | | $ | - | | | $ | - | | | $ | - | | | $ | - | | $ | (6.3 | ) | | $ | 1,471.6 | | 25.1 | % | | | | | | | | | | | | | | | | | | | | | Operating income | | $ | 257.2 | | $ | 87.5 | | | $ | - | | | $ | - | | | $ | - | | | $ | 382.6 | | $ | 6.3 | | | $ | 733.6 | | 12.5 | % | | | | | | | | | | | | | | | | | | | | | Nonoperating expenses | | $ | 104.7 | | $ | - | | | $ | (4.8 | ) | | $ | - | | | $ | - | | | $ | - | | $ | - | | | $ | 99.9 | | | | | | | | | | | | | | | | | | | | | | | Income before income taxes | | $ | 152.5 | | $ | 87.5 | | | $ | 4.8 | | | $ | - | | | $ | - | | | $ | 382.6 | | $ | 6.3 | | | $ | 633.7 | | | | | | | | | | | | | | | | | | | | | | | Income taxes (5) | | $ | 17.9 | | $ | 17.0 | | | $ | 1.7 | | | $ | 49.0 | | | $ | - | | | $ | 76.2 | | $ | 1.0 | | | $ | 162.8 | | | | | | | | | | | | | | | | | | | | | | | Net income from continuing operations | | $ | 134.6 | | $ | 70.5 | | | $ | 3.1 | | | $ | (49.0 | ) | | $ | - | | | $ | 306.4 | | $ | 5.3 | | | $ | 470.9 | | | | | | | | | | | | | | | | | | | | | | | Net income | | $ | 125.2 | | $ | 70.5 | | | $ | 3.1 | | | $ | (49.0 | ) | | $ | 9.4 | | | $ | 306.4 | | $ | 5.3 | | | $ | 470.9 | | | | | | | | | | | | | | | | | | | | | | | Diluted earnings per share** | | $ | 0.42 | | $ | 0.24 | | | $ | 0.01 | | | $ | (0.17 | ) | | $ | 0.03 | | | $ | 1.03 | | $ | 0.02 | | | $ | 1.59 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | * Normalized results are financial measures that are not in accordance with GAAP and exclude the above normalized adjustments. See below for a discussion of each of these adjustments. | | **Totals may not add due to rounding. | | | | | | | | | | | | | | | | | | | | | (1) Restructuring and restructuring-related charges during the twelve months ended December 31, 2012 include $34.5 million of restructuring-related costs and $56.1 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. Restructuring and restructuring-related charges during the twelve months ended December 31, 2011 include $37.4 million of restructuring-related costs and $50.1 million of restructuring costs incurred in connection with the European Transformation Plan and Project Renewal. | | | | | | | | | | | | | | | | | | | | | (2) Loss on extinguishments of debt of $10.9 million during the twelve months ended December 31, 2012 primarily represents the costs associated with the early retirement of the junior convertible subordinated debentures underlying the quarterly income preferred securities (QUIPS) and the April 2013 Senior Notes. Loss on extinguishments of debt of $4.8 million during the twelve months ended December 31, 2011 represents costs incurred to exchange substantially all of the remaining convertible notes issued during March 2009 for shares and cash. | | | | | | | | | | | | | | | | | | | | | (3) During the twelve months ended December 31, 2012, the Company incurred $23.1 million of non-recurring income tax charges resulting from tax contingencies and the expiration of various statutes of limitation. During the twelve months ended December 31 2011, the Company recognized $49.0 million of previously unrecognized income tax benefits primarily resulting from the expiration of various statutes of limitation. | | | | | | | | | | | | | | | | | | | | | (4) During the twelve months ended December 31, 2012 and the twelve months ended December 31, 2011, the Company recognized a $1.7 million gain and $9.4 million loss in discontinued operations, respectively, related to the sale of the hand torch and solder business in July 2011. | | | | | | | | | | | | | | | | | | | | | (5) The Company determined the tax effect of the items excluded from normalized results by applying the estimated effective rate for the applicable jurisdiction in which the pre-tax items were incurred, and for which realization of the resulting tax benefit, if any, is expected. | | | | | | | | | | | | | | | | | | | | | (6) During the twelve months ended December 31, 2011, the Company recorded asset impairment charges of $382.6 million primarily related to goodwill impairment for the Baby & Parenting and Hardware businesses. | | | | | | | | | | | | | | | | | | | | | (7) The Company incurred incremental costs of $6.3 million during the twelve months ended December 31, 2011 associated with its CEO transition. | | | Newell Rubbermaid Inc. | | CONSOLIDATED BALANCE SHEETS (UNAUDITED) | | (in millions) | | | | | | | | | | December 31, | | December 31, | | Assets: | | | 2012 | | 2011 | | | | | | | | Cash and cash equivalents | | | $ | 183.8 | | $ | 170.2 | | Accounts receivable, net | | | | 1,112.4 | | | 1,002.0 | | Inventories, net | | | | 696.4 | | | 699.9 | | Deferred income taxes | | | | 135.8 | | | 130.7 | | Prepaid expenses and other | | | | 142.7 | | | 145.2 | | | | | | | | Total Current Assets | | | | 2,271.1 | | | 2,148.0 | | | | | | | | Property, plant and equipment, net | | | | 560.2 | | | 551.4 | | Goodwill | | | | 2,370.2 | | | 2,366.0 | | Other intangible assets, net | | | | 654.1 | | | 666.1 | | Deferred income taxes | | | | 85.2 | | | 120.2 | | Other assets | | | | 281.2 | | | 309.2 | | | | | | | | Total Assets | | | $ | 6,222.0 | | $ | 6,160.9 | | | | | | | | Liabilities and Stockholders' Equity: | | | | | | | | | | | | | Accounts payable | | | $ | 527.4 | | $ | 468.5 | | Accrued compensation | | | | 173.5 | | | 131.4 | | Other accrued liabilities | | | | 658.0 | | | 693.5 | | Short-term debt | | | | 210.7 | | | 103.6 | | Current portion of long-term debt | | | | 1.2 | | | 263.9 | | | | | | | | Total Current Liabilities | | | | 1,570.8 | | | 1,660.9 | | | | | | | | Long-term debt | | | | 1,706.5 | | | 1,809.3 | | Other noncurrent liabilities | | | | 944.5 | | | 838.1 | | | | | | | | Stockholders' Equity - Parent | | | | 1,996.7 | | | 1,849.1 | | Stockholders' Equity - Noncontrolling Interests | | | | 3.5 | | | 3.5 | | | | | | | | Total Stockholders' Equity | | | | 2,000.2 | | | 1,852.6 | | | | | | | | Total Liabilities and Stockholders' Equity | | | $ | 6,222.0 | | $ | 6,160.9 | | | | | | | | | | Newell Rubbermaid Inc. | | CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) | | (in millions) | | | | | | | | Twelve Months Ended December 31, | | | 2012 | | 2011 | | Operating Activities: | | | | | | Net income | | $ | 401.3 | | | $ | 125.2 | | | Adjustments to reconcile net income to net cash provided by | | | | | | operating activities: | | | | | | Depreciation and amortization | | | 163.7 | | | | 161.6 | | | Impairment charges | | | - | | | | 382.6 | | | Loss on extinguishments of debt | | | 10.9 | | | | 4.8 | | | (Gain) loss on disposal of discontinued operations | | | (5.2 | ) | | | 13.9 | | | Non-cash restructuring costs | | | 0.3 | | | | 7.0 | | | Deferred income taxes | | | 71.2 | | | | (4.8 | ) | | Stock-based compensation expense | | | 32.9 | | | | 43.0 | | | Other | | | 12.0 | | | | 11.7 | | | Changes in operating assets and liabilities, excluding the effects of acquisitions and divestitures: | | | | | | Accounts receivable | | | (101.2 | ) | | | (17.6 | ) | | Inventories | | | 7.7 | | | | (21.5 | ) | | Accounts payable | | | 56.3 | | | | 3.3 | | | Accrued liabilities and other | | | (31.4 | ) | | | (147.9 | ) | | Net cash provided by operating activities | | $ | 618.5 | | | $ | 561.3 | | | | | | | | Investing Activities: | | | | | | Acquisitions and acquisition-related activity | | $ | (26.5 | ) | | $ | (20.0 | ) | | Capital expenditures | | | (177.2 | ) | | | (222.9 | ) | | Proceeds from sales of noncurrent assets | | | 43.5 | | | | 44.3 | | | Other | | | (2.8 | ) | | | (7.8 | ) | | Net cash used in investing activities | | $ | (163.0 | ) | | $ | (206.4 | ) | | | | | | | Financing Activities: | | | | | | Net short-term borrowings | | $ | 106.0 | | | $ | (34.4 | ) | | Proceeds from issuance of debt, net of debt issuance costs | | | 841.9 | | | | 3.3 | | | Payments on and for the settlement of notes payable and debt | | | (1,203.4 | ) | | | (151.0 | ) | | Cash consideration paid to exchange convertible notes | | | - | | | | (3.1 | ) | | Repurchase and retirement of shares of common stock | | | (91.5 | ) | | | (46.1 | ) | | Cash dividends | | | (125.9 | ) | | | (84.9 | ) | | Excess tax benefits related to stock-based compensation | | | 12.7 | | | | - | | | Other, net | | | 14.2 | | | | (8.4 | ) | | Net cash used in financing activities | | $ | (446.0 | ) | | $ | (324.6 | ) | | | | | | | Currency rate effect on cash and cash equivalents | | $ | 4.1 | | | $ | 0.3 | | | | | | | | Increase in cash and cash equivalents | | $ | 13.6 | | | $ | 30.6 | | | Cash and cash equivalents at beginning of year | | | 170.2 | | | | 139.6 | | | Cash and cash equivalents at end of year | | $ | 183.8 | | | $ | 170.2 | | | | | | | | | | | | Newell Rubbermaid Inc. | | Financial Worksheet- Segment Reporting | | (In Millions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2012 | | 2011 | | | | | | | | | | | | | Reconciliation (1) | | | | | | Reconciliation (1) | | | | Year-over-year changes | | | | | Reported | | Excluded | | Normalized | | Operating | | | | Reported | | Excluded | | Normalized | | Operating | | Net Sales | | Normalized OI | | | Net Sales | | OI | | Items | | OI | | Margin | | Net Sales | | OI | | Items | | OI | | Margin | | $ | | % | | $ | | % | | Q1: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Home Solutions | | $ | 349.5 | | $ | 35.5 | | | $ | - | | $ | 35.5 | | | 10.2 | % | | $ | 383.9 | | $ | 49.2 | | | $ | - | | $ | 49.2 | | | 12.8 | % | | $ | (34.4 | ) | | (9.0 | )% | | $ | (13.7 | ) | | (27.8 | )% | | Writing | | | 290.1 | | | 40.0 | | | | - | | | 40.0 | | | 13.8 | % | | | 272.5 | | | 41.6 | | | | - | | | 41.6 | | | 15.3 | % | | | 17.6 | | | 6.5 | % | | | (1.6 | ) | | (3.8 | )% | | Tools | | | 190.6 | | | 28.7 | | | | - | | | 28.7 | | | 15.1 | % | | | 168.4 | | | 23.6 | | | | - | | | 23.6 | | | 14.0 | % | | | 22.2 | | | 13.2 | % | | | 5.1 | | | 21.6 | % | | Commercial Products | | | 175.4 | | | 18.6 | | | | - | | | 18.6 | | | 10.6 | % | | | 166.5 | | | 20.8 | | | | - | | | 20.8 | | | 12.5 | % | | | 8.9 | | | 5.3 | % | | | (2.2 | ) | | (10.6 | )% | | Baby & Parenting | | | 182.2 | | | 22.4 | | | | - | | | 22.4 | | | 12.3 | % | | | 150.3 | | | 7.4 | | | | - | | | 7.4 | | | 4.9 | % | | | 31.9 | | | 21.2 | % | | | 15.0 | | | 202.7 | % | | Specialty | | | 144.6 | | | 23.4 | | | | - | | | 23.4 | | | 16.2 | % | | | 132.6 | | | 15.7 | | | | - | | | 15.7 | | | 11.8 | % | | | 12.0 | | | 9.0 | % | | | 7.7 | | | 49.0 | % | | Restructuring Costs | | | - | | | (12.7 | ) | | | 12.7 | | | - | | | | | | - | | | (5.8 | ) | | | 5.8 | | | - | | | | | | - | | | | | | - | | | | | Corporate | | | - | | | (31.7 | ) | | | 10.0 | | | (21.7 | ) | | | | | - | | | (24.5 | ) | | | 5.3 | | | (19.2 | ) | | | | | - | | | | | | (2.5 | ) | | (13.0 | )% | | Total | | $ | 1,332.4 | | $ | 124.2 | | | $ | 22.7 | | $ | 146.9 | | | 11.0 | % | | $ | 1,274.2 | | $ | 128.0 | | | $ | 11.1 | | $ | 139.1 | | | 10.9 | % | | $ | 58.2 | | | 4.6 | % | | $ | 7.8 | | | 5.6 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2012 | | 2011 | | | | | | | | | | | | | Reconciliation (1) | | | | | | Reconciliation (1) | | | | Year-over-year changes | | | | | Reported | | Excluded | | Normalized | | Operating | | | | Reported | | Excluded | | Normalized | | Operating | | Net Sales | | Normalized OI | | | Net Sales | | OI | | Items | | OI | | Margin | | Net Sales | | OI | | Items | | OI | | Margin | | $ | | % | | $ | | % | | Q2: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Home Solutions | | $ | 414.0 | | $ | 47.6 | | | $ | - | | $ | 47.6 | | | 11.5 | % | | $ | 426.1 | | $ | 51.6 | | | $ | - | | $ | 51.6 | | | 12.1 | % | | $ | (12.1 | ) | | (2.8 | )% | | $ | (4.0 | ) | | (7.8 | )% | | Writing | | | 394.4 | | | 98.0 | | | | - | | | 98.0 | | | 24.8 | % | | | 407.7 | | | 91.9 | | | | - | | | 91.9 | | | 22.5 | % | | | (13.3 | ) | | (3.3 | )% | | | 6.1 | | | 6.6 | % | | Tools | | | 202.4 | | | 30.5 | | | | - | | | 30.5 | | | 15.1 | % | | | 200.2 | | | 30.6 | | | | - | | | 30.6 | | | 15.3 | % | | | 2.2 | | | 1.1 | % | | | (0.1 | ) | | (0.3 | )% | | Commercial Products | | | 190.1 | | | 21.1 | | | | - | | | 21.1 | | | 11.1 | % | | | 194.7 | | | 30.1 | | | | - | | | 30.1 | | | 15.5 | % | | | (4.6 | ) | | (2.4 | )% | | | (9.0 | ) | | (29.9 | )% | | Baby & Parenting | | | 182.4 | | | 19.2 | | | | - | | | 19.2 | | | 10.5 | % | | | 175.2 | | | 13.0 | | | | - | | | 13.0 | | | 7.4 | % | | | 7.2 | | | 4.1 | % | | | 6.2 | | | 47.7 | % | | Specialty | | | 132.9 | | | 12.0 | | | | - | | | 12.0 | | | 9.0 | % | | | 141.4 | | | 8.9 | | | | - | | | 8.9 | | | 6.3 | % | | | (8.5 | ) | | (6.0 | )% | | | 3.1 | | | 34.8 | % | | Restructuring Costs | | | - | | | (11.1 | ) | | | 11.1 | | | - | | | | | | - | | | (1.0 | ) | | | 1.0 | | | - | | | | | | - | | | | | | - | | | | | Corporate | | | - | | | (31.8 | ) | | | 10.5 | | | (21.3 | ) | | | | | - | | | (29.2 | ) | | | 9.0 | | | (20.2 | ) | | | | | - | | | | | | (1.1 | ) | | (5.4 | )% | | Total | | $ | 1,516.2 | | $ | 185.5 | | | $ | 21.6 | | $ | 207.1 | | | 13.7 | % | | $ | 1,545.3 | | $ | 195.9 | | | $ | 10.0 | | $ | 205.9 | | | 13.3 | % | | $ | (29.1 | ) | | (1.9 | )% | | $ | 1.2 | | | 0.6 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2012 | | 2011 | | | | | | | | | | | | | Reconciliation (1) | | | | | | Reconciliation (1,2) | | | | Year-over-year changes | | | | | Reported | | Excluded | | Normalized | | Operating | | | | Reported | | Excluded | | Normalized | | Operating | | Net Sales | | Normalized OI | | | Net Sales | | OI | | Items | | OI | | Margin | | Net Sales | | OI | | Items | | OI | | Margin | | $ | | % | | $ | | % | | Q3: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Home Solutions | | $ | 427.4 | | $ | 69.6 | | | $ | 2.0 | | $ | 71.6 | | | 16.8 | % | | $ | 450.6 | | | 70.9 | | | $ | - | | $ | 70.9 | | | 15.7 | % | | $ | (23.2 | ) | | (5.1 | )% | | $ | 0.7 | | | 1.0 | % | | Writing | | | 387.2 | | | 68.3 | | | | 1.2 | | | 69.5 | | | 17.9 | % | | | 381.5 | | | 57.9 | | | | - | | | 57.9 | | | 15.2 | % | | | 5.7 | | | 1.5 | % | | | 11.6 | | | 20.0 | % | | Tools | | | 203.6 | | | 26.8 | | | | - | | | 26.8 | | | 13.2 | % | | | 208.7 | | | 34.6 | | | | - | | | 34.6 | | | 16.6 | % | | | (5.1 | ) | | (2.4 | )% | | | (7.8 | ) | | (22.5 | )% | | Commercial Products | | | 205.6 | | | 31.2 | | | | - | | | 31.2 | | | 15.2 | % | | | 193.3 | | | 29.6 | | | | - | | | 29.6 | | | 15.3 | % | | | 12.3 | | | 6.4 | % | | | 1.6 | | | 5.4 | % | | Baby & Parenting | | | 185.3 | | | 18.3 | | | | - | | | 18.3 | | | 9.9 | % | | | 176.2 | | | 17.7 | | | | - | | | 17.7 | | | 10.0 | % | | | 9.1 | | | 5.2 | % | | | 0.6 | | | 3.4 | % | | Specialty | | | 126.2 | | | 12.6 | | | | - | | | 12.6 | | | 10.0 | % | | | 139.6 | | | 20.3 | | | | - | | | 20.3 | | | 14.5 | % | | | (13.4 | ) | | (9.6 | )% | | | (7.7 | ) | | (37.9 | )% | | Impairment Charges | | | - | | | - | | | | - | | | - | | | | | | - | | | (382.6 | ) | | | 382.6 | | | - | | | | | | - | | | | | | - | | | | | Restructuring Costs | | | - | | | (13.7 | ) | | | 13.7 | | | - | | | | | | - | | | (5.5 | ) | | | 5.5 | | | - | | | | | | - | | | | | | - | | | | | Corporate | | | - | | | (24.7 | ) | | | 5.4 | | | (19.3 | ) | | | | | - | | | (35.1 | ) | | | 15.9 | | | (19.2 | ) | | | | | - | | | | | | (0.1 | ) | | (0.5 | )% | | Total | | $ | 1,535.3 | | $ | 188.4 | | | $ | 22.3 | | $ | 210.7 | | | 13.7 | % | | $ | 1,549.9 | | $ | (192.2 | ) | | $ | 404.0 | | $ | 211.8 | | | 13.7 | % | | $ | (14.6 | ) | | (0.9 | )% | | $ | (1.1 | ) | | (0.5 | )% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2012 | | 2011 | | | | | | | | | | | | | Reconciliation (1) | | | | | | Reconciliation (1) | | | | Year-over-year changes | | | | | Reported | | Excluded | | Normalized | | Operating | | | | Reported | | Excluded | | Normalized | | Operating | | Net Sales | | Normalized OI | | | Net Sales | | OI | | Items | | OI | | Margin | | Net Sales | | OI | | Items | | OI | | Margin | | $ | | % | | $ | | % | | Q4: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Home Solutions | | $ | 453.1 | | $ | 64.8 | | | $ | 2.9 | | $ | 67.7 | | | 14.9 | % | | $ | 449.6 | | $ | 57.2 | | | $ | - | | $ | 57.2 | | | 12.7 | % | | $ | 3.5 | | | 0.8 | % | | $ | 10.5 | | | 18.4 | % | | Writing | | | 344.5 | | | 55.6 | | | | - | | | 55.6 | | | 16.1 | % | | | 337.6 | | | 55.5 | | | | - | | | 55.5 | | | 16.4 | % | | | 6.9 | | | 2.0 | % | | | 0.1 | | | 0.2 | % | | Tools | | | 209.5 | | | 23.8 | | | | - | | | 23.8 | | | 11.4 | % | | | 202.3 | | | 30.3 | | | | - | | | 30.3 | | | 15.0 | % | | | 7.2 | | | 3.6 | % | | | (6.5 | ) | | (21.5 | )% | | Commercial Products | | | 188.6 | | | 22.0 | | | | - | | | 22.0 | | | 11.7 | % | | | 187.0 | | | 27.8 | | | | - | | | 27.8 | | | 14.9 | % | | | 1.6 | | | 0.9 | % | | | (5.8 | ) | | (20.9 | )% | | Baby & Parenting | | | 186.2 | | | 12.8 | | | | - | | | 12.8 | | | 6.9 | % | | | 178.7 | | | 13.5 | | | | - | | | 13.5 | | | 7.6 | % | | | 7.5 | | | 4.2 | % | | | (0.7 | ) | | (5.2 | )% | | Specialty | | | 136.9 | | | 20.2 | | | | - | | | 20.2 | | | 14.8 | % | | | 140.0 | | | 15.3 | | | | - | | | 15.3 | | | 10.9 | % | | | (3.1 | ) | | (2.2 | )% | | | 4.9 | | | 32.0 | % | | Restructuring Costs | | | - | | | (18.6 | ) | | | 18.6 | | | - | | | | | | - | | | (37.8 | ) | | | 37.8 | | | - | | | | | | - | | | | | | - | | | | | Corporate | | | - | | | (26.8 | ) | | | 2.5 | | | (24.3 | ) | | | | | - | | | (36.3 | ) | | | 13.5 | | | (22.8 | ) | | | | | - | | | | | | (1.5 | ) | | (6.6 | )% | | Total | | $ | 1,518.8 | | $ | 153.8 | | | $ | 24.0 | | $ | 177.8 | | | 11.7 | % | | $ | 1,495.2 | | $ | 125.5 | | | $ | 51.3 | | $ | 176.8 | | | 11.8 | % | | $ | 23.6 | | | 1.6 | % | | $ | 1.0 | | | 0.6 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2012 | | 2011 | | | | | | | | | | | | | Reconciliation (1) | | | | | | Reconciliation (1,2) | | | | Year-over-year changes | | | | | Reported | | Excluded | | Normalized | | Operating | | | | Reported | | Excluded | | Normalized | | Operating | | Net Sales | | Normalized OI | | | Net Sales | | OI | | Items | | OI | | Margin | | Net Sales | | OI | | Items | | OI | | Margin | | $ | | % | | $ | | % | | YE: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Home Solutions | | $ | 1,644.0 | | $ | 217.5 | | | $ | 4.9 | | $ | 222.4 | | | 13.5 | % | | $ | 1,710.2 | | $ | 228.9 | | | $ | - | | $ | 228.9 | | | 13.4 | % | | $ | (66.2 | ) | | (3.9 | )% | | $ | (6.5 | ) | | (2.8 | )% | | Writing | | | 1,416.2 | | | 261.9 | | | | 1.2 | | | 263.1 | | | 18.6 | % | | | 1,399.3 | | | 246.9 | | | | - | | | 246.9 | | | 17.6 | % | | | 16.9 | | | 1.2 | % | | | 16.2 | | | 6.6 | % | | Tools | | | 806.1 | | | 109.8 | | | | - | | | 109.8 | | | 13.6 | % | | | 779.6 | | | 119.1 | | | | - | | | 119.1 | | | 15.3 | % | | | 26.5 | | | 3.4 | % | | | (9.3 | ) | | (7.8 | )% | | Commercial Products | | | 759.7 | | | 92.9 | | | | - | | | 92.9 | | | 12.2 | % | | | 741.5 | | | 108.3 | | | | - | | | 108.3 | | | 14.6 | % | | | 18.2 | | | 2.5 | % | | | (15.4 | ) | | (14.2 | )% | | Baby & Parenting | | | 736.1 | | | 72.7 | | | | - | | | 72.7 | | | 9.9 | % | | | 680.4 | | | 51.6 | | | | - | | | 51.6 | | | 7.6 | % | | | 55.7 | | | 8.2 | % | | | 21.1 | | | 40.9 | % | | Specialty | | | 540.6 | | | 68.2 | | | | - | | | 68.2 | | | 12.6 | % | | | 553.6 | | | 60.2 | | | | - | | | 60.2 | | | 10.9 | % | | | (13.0 | ) | | (2.3 | )% | | | 8.0 | | | 13.3 | % | | Impairment Charges | | | - | | | - | | | | - | | | - | | | | | | - | | | (382.6 | ) | | | 382.6 | | | - | | | | | | - | | | | | | - | | | | | Restructuring Costs | | | - | | | (56.1 | ) | | | 56.1 | | | - | | | | | | - | | | (50.1 | ) | | | 50.1 | | | - | | | | | | - | | | | | | - | | | | | Corporate | | | - | | | (115.0 | ) | | | 28.4 | | | (86.6 | ) | | | | | - | | | (125.1 | ) | | | 43.7 | | | (81.4 | ) | | | | | - | | | | | | (5.2 | ) | | (6.4 | )% | | Total | | $ | 5,902.7 | | $ | 651.9 | | | $ | 90.6 | | $ | 742.5 | | | 12.6 | % | | $ | 5,864.6 | | $ | 257.2 | | | $ | 476.4 | | $ | 733.6 | | | 12.5 | % | | $ | 38.1 | | | 0.6 | % | | $ | 8.9 | | | 1.2 | % | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1) Excluded items consist of restructuring-related and restructuring costs. Restructuring-related and restructuring costs of $34.5 million and $56.1 million, respectively, incurred during the 2012 periods relate to the European Transformation Plan and Project Renewal. For 2011, restructuring-related and restructuring costs of $37.4 million and $50.1 million, respectively, relate to the European Transformation Plan and Project Renewal. Additionally, Normalized operating income for the twelve months ended December 31, 2011 excludes incremental SG&A costs of $6.3 million resulting from the CEO transition during 2011. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (2) Normalized operating income for the three months ended September 30, 2011 and twelve months ended December 31, 2011 exclude impairment charges of $382.6 million relating primarily to the impairment of goodwill for the Baby & Parenting and Hardware businesses. | | | Newell Rubbermaid Inc. | | Three Months Ended December 31, 2012 | | In Millions | | | | | | | | | | | | | | | | | Currency Analysis | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | By Segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2012 | | 2011 | | Year-Over-Year Increase (Decrease) | | | | | Sales as | | Currency | | Core | | Sales as | | Excluding | | Including | | Currency | | | Reported | | Impact | | Sales (1) | | Reported | | Currency | | Currency | | Impact | | | | | | | | | | | | | | | | | Home Solutions | | $ | 453.1 | | $ | (1.4 | ) | | $ | 451.7 | | $ | 449.6 | | 0.5 | % | | 0.8 | % | | 0.3 | % | | Writing | | | 344.5 | | | 1.1 | | | | 345.6 | | | 337.6 | | 2.4 | % | | 2.0 | % | | (0.4 | )% | | Tools | | | 209.5 | | | 5.0 | | | | 214.5 | | | 202.3 | | 6.0 | % | | 3.6 | % | | (2.4 | )% | | Commercial Products | | | 188.6 | | | 0.8 | | | | 189.4 | | | 187.0 | | 1.3 | % | | 0.9 | % | | (0.4 | )% | | Baby & Parenting | | | 186.2 | | | 3.1 | | | | 189.3 | | | 178.7 | | 5.9 | % | | 4.2 | % | | (1.7 | )% | | Specialty | | | 136.9 | | | 1.3 | | | | 138.2 | | | 140.0 | | (1.3 | )% | | (2.2 | )% | | (0.9 | )% | | | | | | | | | | | | | | | | | Total Company | | $ | 1,518.8 | | $ | 9.9 | | | $ | 1,528.7 | | $ | 1,495.2 | | 2.2 | % | | 1.6 | % | | (0.6 | )% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | By Geography | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | United States | | $ | 1,022.8 | | $ | - | | | $ | 1,022.8 | | $ | 1,000.6 | | 2.2 | % | | 2.2 | % | | 0.0 | % | | Canada | | | 96.3 | | | (2.6 | ) | | | 93.7 | | | 91.6 | | 2.3 | % | | 5.1 | % | | 2.8 | % | | Total North America | | | 1,119.1 | | | (2.6 | ) | | | 1,116.5 | | | 1,092.2 | | 2.2 | % | | 2.5 | % | | 0.3 | % | | | | | | | | | | | | | | | | | Europe, Middle East and Africa | | | 181.2 | | | 8.1 | | | | 189.3 | | | 198.1 | | (4.4 | )% | | (8.5 | )% | | (4.1 | )% | | Latin America | | | 93.6 | | | 3.5 | | | | 97.1 | | | 80.2 | | 21.1 | % | | 16.7 | % | | (4.4 | )% | | Asia Pacific | | | 124.9 | | | 0.9 | | | | 125.8 | | | 124.7 | | 0.9 | % | | 0.2 | % | | (0.7 | )% | | Total International | | | 399.7 | | | 12.5 | | | | 412.2 | | | 403.0 | | 2.3 | % | | (0.8 | )% | | (3.1 | )% | | | | | | | | | | | | | | | | | Total Company | | $ | 1,518.8 | | $ | 9.9 | | | $ | 1,528.7 | | $ | 1,495.2 | | 2.2 | % | | 1.6 | % | | (0.6 | )% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1)- "Core Sales" is determined by applying the prior year monthly exchange rates to the current year local currency monthly sales amounts, with the difference in the current year reported sales and Core Sales representing changes attributable to foreign currency translation, reported in the table as "Currency Impact". | | Newell Rubbermaid Inc. | | Twelve Months Ended December 31, 2012 | | In Millions | | | | | | | | | | | | | | | | | Currency Analysis | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | By Segment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 2012 | | 2011 (1) | | Year-Over-Year (Decrease) Increase | | | | | Sales as | | Currency | | Core | | Sales as | | Excluding | | Including | | Currency | | | Reported | | Impact | | Sales (2) | | Reported | | Currency | | Currency | | Impact | | | | | | | | | | | | | | | | | Home Solutions | | $ | 1,644.0 | | $ | 5.0 | | $ | 1,649.0 | | $ | 1,710.2 | | | (3.6 | )% | | (3.9 | )% | | (0.3 | )% | | Writing | | | 1,416.2 | | | 27.3 | | | 1,443.5 | | | 1,399.3 | | | 3.2 | % | | 1.2 | % | | (2.0 | )% | | Tools | | | 806.1 | | | 28.3 | | | 834.4 | | | 779.6 | | | 7.0 | % | | 3.4 | % | | (3.6 | )% | | Commercial Products | | | 759.7 | | | 8.6 | | | 768.3 | | | 741.5 | | | 3.6 | % | | 2.5 | % | | (1.1 | )% | | Baby & Parenting | | | 736.1 | | | 11.1 | | | 747.2 | | | 680.4 | | | 9.8 | % | | 8.2 | % | | (1.6 | )% | | Specialty | | | 540.6 | | | 10.8 | | | 551.4 | | | 553.6 | | | (0.4 | )% | | (2.3 | )% | | (1.9 | )% | | | | | | | | | | | | | | | | | Total Company | | $ | 5,902.7 | | $ | 91.1 | | $ | 5,993.8 | | $ | 5,864.6 | | | 2.2 | % | | 0.6 | % | | (1.6 | )% | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | By Geography | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | United States | | $ | 4,004.5 | | $ | - | | $ | 4,004.5 | | $ | 3,915.7 | | | 2.3 | % | | 2.3 | % | | 0.0 | % | | Canada | | | 358.8 | | | 6.0 | | | 364.8 | | | 376.3 | | | (3.1 | )% | | (4.7 | )% | | (1.6 | )% | | Total North America | | | 4,363.3 | | | 6.0 | | | 4,369.3 | | | 4,292.0 | | | 1.8 | % | | 1.7 | % | | (0.1 | )% | | | | | | | | | | | | | | | | | Europe, Middle East and Africa | | | 718.4 | | | 58.8 | | | 777.2 | | | 815.3 | | | (4.7 | )% | | (11.9 | )% | | (7.2 | )% | | Latin America | | | 338.9 | | | 26.2 | | | 365.1 | | | 318.6 | | | 14.6 | % | | 6.4 | % | | (8.2 | )% | | Asia Pacific | | | 482.1 | | | 0.1 | | | 482.2 | | | 438.7 | | | 9.9 | % | | 9.9 | % | | 0.0 | % | | Total International | | | 1,539.4 | | | 85.1 | | | 1,624.5 | | | 1,572.6 | | | 3.3 | % | | (2.1 | )% | | (5.4 | )% | | | | | | | | | | | | | | | | | Total Company | | $ | 5,902.7 | | $ | 91.1 | | $ | 5,993.8 | | $ | 5,864.6 | | | 2.2 | % | | 0.6 | % | | (1.6 | )% | | | | | | | | | | | | | | | | | (1)- 2011 results have been adjusted to reclassify the results of operations of the hand torch and solder business to discontinued operations. | | | | | | | | | | | | | | | | | (2)- "Core Sales" is determined by applying the prior year monthly exchange rates to the current year local currency monthly sales amounts, with the difference in the current year reported sales and Core Sales representing changes attributable to foreign currency translation, reported in the table as "Currency Impact". | 
Contact:
Newell Rubbermaid Inc.
Nancy O’Donnell, +1 (770) 418-7723 begin_of_the_skype_highlighting +1 (770) 418-7723 end_of_the_skype_highlighting
Vice President, Investor Relations
or
David Doolittle, +1 (770) 418-7519 begin_of_the_skype_highlighting +1 (770) 418-7519 end_of_the_skype_highlighting
Vice President, Corporate Communications
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| | NWL: Newell Rubbermaid, Inc. | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
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| From: Dr_of_Microcaps | 2/20/2013 2:35:12 PM | | | | | | George Soros' 4 New Dividend-Paying Picks With Upside Potential
February 20, 2013 by: Dividendinvestr | includes: F, IVZ, NWL, PNC
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. (More...)
Business relationship disclosure: Dividendinvestr is a team of analysts. This article was written by Serkan Unal, one of our writers. We did not receive compensation for this article (other than from Seeking Alpha), and we have no business relationship with any company whose stock is mentioned in this article.
By Serkan Unal
George Soros, one of the world's most famous investors and financiers, earned $1 billion from shorting the British pound in September 1992. He seems to have struck the same luck again last year and this so far, as his short trade on the Japanese currency has produced a gain of about $1 billion since November 2012. Soros has been making bets across asset classes and sectors based on macroeconomic events and economic theory. He currently runs a family office with some $24 billion in assets under management.
Soros' family office recently filed its 13-F regulatory disclosure with the SEC for the fourth quarter of 2012. Based on the filing, Soros sold out of his stakes in 69 companies, while he entered 70 new positions, including several positions paying dividends. Here is a closer look at Soros' four new stocks paying dividend yields above 2.0% and boasting the potential for capital appreciation and dividend growth over the longer term. The stocks are listed based on their size in the overall portfolio.
Ford Motor Company ( F), the second largest U.S. automaker by market share, has a dividend yield of 3.1% and a payout ratio of 29% of the current-year EPS estimate. Recently, the company doubled its quarterly dividend. Last quarter, Soros reported owning nearly $41 million worth of the stock. The company's EPS for the fourth quarter of 2012 and the whole year beat analysts' estimates; however, its 2013 outlook was below investors' expectations, given deeper anticipated losses in Europe and a break-even position in Latin America. Still, Ford's North American sales are driving growth. There is a strong pent-up demand in the U.S. as the aging vehicle fleet hit the record-high average age of 11.3 years in January 2013. This year, U.S. vehicle sales are running at an annualized rate of 15.3 million, above the five-year high of 14.5 million reported in 2012. Ford predicts that U.S. sales could grow as much as 8% in 2013. In addition, Ford's sales are booming in China and India. Based on the company's predication from 2011, Ford expects China and India sales to boost its global vehicle sales by 50% to 8 million by 2015. Despite the company's upbeat predictions, analysts at Barclays and Deutsche Bank recently downgraded the stock based on valuation, margin expansion, and anticipated "lowering expectations." Ford still looks as good value, trading at 9.4x forward earnings versus 17.1x for General Motors Co. ( GM) and 22.4x for Toyota Motor Co. ( TM).
Invesco Ltd. ( IVZ), an asset manager, has a dividend yield of 2.5%, payout ratio of 34% of the current-year EPS estimate, and five-year annualized dividend growth of about 6.0%. Last quarter, Soros reported owning almost $40 million worth of the stock. Invesco Ltd. currently has some $712.6 billion in assets under management. The company's AUM has benefited from positive inflows into both passive and active investment vehicles. Even though the company missed analysts' expectations, mainly on bottom lines due to rising compensation costs, the company's growth outlook is sanguine. Analysts forecast the company's long-term EPS CAGR at a robust 14.6%. Its growth will be driven by rising investment flows amidst the company's broad diversification. The stock is up nearly 11% over the past 12 months and is trading close to its 52-week high. Last month, both JPMorgan and Morgan Stanley downgraded the stock based on its valuation, softer sales of its leading product, and margin expansion. The stock is currently trading at a forward P/E of 13.7x, below an industry multiple of 15.4x. Its price-to-book of 1.5 is also lower than the industry average ratio of 1.7. The stock's long-term EPS growth expectations suggest a potential for appreciation and dividend growth in the future.
Newell Rubbermaid Inc. ( NWL), the maker of plastic items, including plastic bins and cookware, has a dividend yield of 2.5% and a payout ratio of 33% of the current-year EPS estimate. The company's quarterly dividend was slashed back in 2009, from 21 cents to 5 cents per share, but since it has risen threefold. Last quarter, Soros reported owning $33.4 million in NWL stock. Over the past four quarters, the company has been posting estimate-beating EPS results. Its cost cutting and emerging market growth have been propping up the bottom line. The company expects to see core sales growth of between 2% and 4% this year, with the EPS guidance in the range between $1.78 and $1.84. The midpoint of NWL's EPS guidance meets the analysts' EPS estimate of $1.82. The company has seen marginal, but still positive EPS revisions over the past 30 days. Its forward P/E of 13.2x is on par with its respective industry's forward earnings multiple. However, the stock is priced below industry based on a price-to-book of 3.4 (an industry price-to-book ratio is 4.3). In 2010, there were rumors that the company was a takeover target-involving Procter & Gamble ( PG) as a rumored acquirer. However, those rumors dissipated over time. Several prominent hedge funds, including Ken Griffin's Citadel Investments, Ariel Investments, and Phill Gross's Adage Capital, have positions in NWL.
PNC Financial Services Group Inc. ( PNC), one of the largest U.S. diversified financial services organizations, has a dividend yield of 2.5% and a payout ratio of 25% of the current-year EPS estimate. The bank's quarterly dividend was slashed in 2009, from 66 cents to 10 cents per share, but since it has increased fourfold. The bank generates a large share of fee-based revenues, which may improve this year. Moreover, the bank also has a high exposure to commercial and industrial loans, including commercial real estate construction exposure, which is expected to rise smartly with the rebounding economy. In general, the strong Midwest economy, supported by farming and hydraulic fracking industries, has given support to the bank's growth. Growth is also driven by acquisitions, including that of RBC's U.S. retail banking business. Interestingly, PNC owns 36 million shares of the world's largest asset manager, BlackRock Inc. ( BLK), and derives 11% of its profit from its BLK investment. Given BLK's spectacular performance over the past several years, this PNC position has proven to be lucrative. However, it is relevant to note that some of the bank's weaknesses include a contracting net interest margin and capital ratios slightly below those of its peers. Also, the bank has an ROE of 7.2%, below its industry's average ROE of 8.3%. It is trading at 90% of book value. |
| | NWL: Newell Rubbermaid, Inc. | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
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| From: Dr_of_Microcaps | 6/17/2013 12:39:54 PM | | | | | | Newell Rubbermaid Appoints Jeremy Liebowitz to Lead Acceleration of E-Commerce GrowthProven leader will maximize online commercial presence
Press Release: Newell Rubbermaid – 4 hours ago
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RELATED QUOTES
SymbolPriceChange | NWL | 27.16 | -0.01 |
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ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid ( NWL) today announced the appointment of Jeremy Liebowitz to the newly created position of Vice President, Global E-Commerce, to lead the acceleration of the company’s online revenue growth worldwide.
“E-commerce is our single biggest growth opportunity and an area where we expect to make substantial investments under Jeremy’s leadership,” said Mark Tarchetti, Newell Rubbermaid’s Chief Development Officer. “In this highly visible and collaborative role, Jeremy will focus on maximizing our online commercial presence with existing customers and developing a long term channel strategy to drive growth.”
Liebowitz has a proven track record of building successful e-commerce platforms over an 18-year career, most recently as Vice President of Digital Commerce and Marketing for Jarden Corp., where he achieved significant online revenue growth multiples over five years. Previously, Liebowitz held key e-commerce roles at Limited Brands, Inc. and TracFone Wireless.
To accelerate Newell Rubbermaid’s global e-commerce business, Liebowitz will develop a comprehensive global strategy and ensure the appropriate tools, workplans and organization development are in place to create a step change. The role will be externally focused, collaborating closely with customer development leaders to improve Newell Rubbermaid’s offering to customers.
Liebowitz will report to Tarchetti, with a strong link to Chief Customer Officer Joe Cavaliere.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company’s Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
NWL-EX
Caution Concerning Forward-Looking Statements
Statements in this press release that are not historical in nature constitute forward-looking statements. These forward-looking statements relate to information or assumptions about the effects and impacts of the Company’s organizational transformation initiatives, including Project Renewal and the European Transformation Plan. Actual results could differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by the forward-looking statements include, but are not limited to, our dependence on the strength of retail, commercial and industrial sectors of the economy, our ability to effectively achieve and redeploy cost savings from these transformation initiatives, as well as those factors listed in the company’s most recently filed Annual Report on Form 10-K, filed with the Securities and Exchange Commission.
Contact:
Newell Rubbermaid
Nancy O’Donnell, +1 770-418-7723
Vice President, Investor Relations
or
David Doolittle, +1 770-418-7519
Vice President, Corporate Communications |
| | NWL: Newell Rubbermaid, Inc. | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
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| From: Dr_of_Microcaps | 7/16/2013 6:09:02 PM | | | | | | Newell Rubbermaid Announces Sale of Teach Platform To Skyview Capital LLC Press Release: Newell Rubbermaid – Mon, Jul 15, 2013 1:25 PM EDT 0
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SymbolPriceChange
ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid Inc. ( NWL) today announced the sale of its Teach platform, including the Mimio® and Headsprout® interactive teaching technology brands, to Skyview Capital, LLC ( www.skyviewcapital.com), a Beverly Hills, Calif., private equity firm. Terms were not disclosed. The transaction has closed with the signing of the agreement.
“Our Growth Game Plan is designed to accelerate performance by setting clear priorities for our business. This transaction further simplifies our portfolio as we continue to invest behind our highest-potential global growth opportunities,” said Michael Polk, Newell Rubbermaid’s President and Chief Executive Officer.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company’s Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
Contact:
Newell Rubbermaid
Nancy O’Donnell, +1 (770) 418-7723
Vice President, Investor Relations
or
David Doolittle, +1 (770) 418-7519
Vice President, Global Communications
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| | NWL: Newell Rubbermaid, Inc. | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
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| From: Dr_of_Microcaps | 10/3/2013 10:28:18 AM | | | | | | Newell Rubbermaid Appoints Lead Creative and Media Agencies to Drive More Impactful Global MarketingConsolidates agencies to step-change effectiveness and efficiency
 Press Release: Newell Rubbermaid – 2 hours 1 minute ago
RELATED QUOTES
SymbolPriceChange | NWL | 27.51 | -0.15 |
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ATLANTA, Oct. 3, 2013 /PRNewswire/ -- Newell Rubbermaid ( NWL) today announced a significant step in making bigger, more strategic, global investments behind its brands with the consolidation of scores of local agencies worldwide into one lead creative partner and one lead media-buying partner. The two agencies will help oversee Newell Rubbermaid's globaladvertising and promotion investment.
Bartle Bogle Hegarty (BBH) has been selected as lead creative agency, which will have full responsibility to deliver strategy, creative execution and implementation (excluding media) in all brand-related communication channels. Part of the Publicis Groupe, BBH was named 2013 "Mid-Sized Agency of the Year" by the O'Toole Awards and is one of the most awarded advertising agencies in the world. BBH works with leading brands including Johnnie Walker, British Airways, KFC, Audi, Barclays Bank, Westin Hotels & Resorts, and Axe. The global assignment will be led by BBH New York, supported by the entire BBH global agency network including offices in London, Sao Paulo and Shanghai.
PHD has been selected as lead media agency, which will help with overall strategic communicationplanning and be responsible for all media placements across all channels. Originally founded as the world's first planning-led media agency, PHD, part of the Omnicom Media Group, was named Adweek's "Global Media Agency of the Year" in 2012 and is a proven innovator in communications planning and buying. PHD's clients include Mondelez, Porsche, Bentley, ANZ, GlaxoSmithKline, Hyatt and Canon.
"For the first time, we are aligning all our brands and categories behind one set of agency partners to drive big ideas that create a strong point of difference for consumers," said Richard Davies, Chief Marketing and Insights Officer of Newell Rubbermaid. "BBH and PHD are the best in the business at what they do. With their partnership, we now have the power to achieve much greater scale, reach and impact as we invest behind growing our brands worldwide."
"Our ambition is to push the limits of what's possible for our brands," said Mark Tarchetti, Newell Rubbermaid's Chief Development Officer. "The Growth Game Plan strategy promises to accelerate growth through sharper portfolio choices and new capabilities. Our progress is becoming an increasing reality in important steps like a new state of the art design center that will open next year, investments in e-commerce and innovation, and the appointment of global creative and media agencies. These moves allow us to step-change quality while taking all the efficiencies that come with scale. Our momentum is increasingly visible in the marketplace as we make new A&P investments that are unprecedented in Newell Rubbermaid's history, and build an even stronger 2014 plan."
The new agency relationships are effective Oct. 1, with transition work beginning immediately to ensure integrated teams are fully operational by the beginning of the year.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com. |
| | NWL: Newell Rubbermaid, Inc. | Stock Discussion ForumsShare | RecommendKeepReplyMark as Last Read |
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| From: Dr_of_Microcaps | 10/10/2013 9:36:09 AM | | | | | | Newell Rubbermaid To Webcast Third Quarter 2013 Earnings Results Press Release: Newell Rubbermaid – 1 hour 44 minutes ago
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SymbolPriceChange | NWL | 26.69 | |
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ATLANTA--(BUSINESS WIRE)--
Newell Rubbermaid ( NWL) today announced its third quarter 2013 earnings results will be released Friday, October 25, prior to market open, followed by a live webcast at 10:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid’s Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie®, Paper Mate®, Rubbermaid Commercial Products®, Irwin®, Lenox®, Parker®, Waterman®, Rubbermaid®, Levolor®, Calphalon®, Goody®, Graco®, Aprica® and Dymo®. As part of the company’s Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company’s Web site, www.newellrubbermaid.com.
Contact:
Newell Rubbermaid
Nancy O’Donnell, 770-418-7723
Vice President, Investor Relations
or
David Doolittle, 770-418-7519
Vice President, Global Communications |
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| From: Dr_of_Microcaps | 1/21/2014 9:00:24 PM | | | | | | Newell Rubbermaid to Webcast Fourth Quarter 2013 Earnings Results
Newell Rubbermaid12 hours ago
ATLANTA, Jan. 21, 2014 (GLOBE NEWSWIRE) -- Newell Rubbermaid ( NWL) today announced its fourth quarter 2013 earnings results will be released Friday, January 31, prior to market open and will be followed by a live webcast at 9:00 a.m. ET. To listen to the webcast, please visit Events & Presentations in the Investor Relations section of Newell Rubbermaid's Web site at www.newellrubbermaid.com. The live webcast will be recorded and made available for replay.
About Newell Rubbermaid
Newell Rubbermaid Inc., an S&P 500 company, is a global marketer of consumer and commercial products with 2012 sales of approximately $5.6 billion and a strong portfolio of leading brands, including Sharpie(R), Paper Mate(R), Rubbermaid Commercial Products(R), Irwin(R), Lenox(R), Parker(R), Waterman(R), Rubbermaid(R), Levolor(R), Calphalon(R), Goody(R), Graco(R), Aprica(R) and Dymo(R). As part of the company's Growth Game Plan, Newell Rubbermaid is making sharper portfolio choices and investing in new marketing and innovation to accelerate performance.
This press release and additional information about Newell Rubbermaid are available on the company's Web site, www.newellrubbermaid.com.
Contact:
Nancy O'Donnell
Vice President, Investor Relations
+1 (770) 418-7723
David Doolittle
Vice President, Global Communications
+1 (770) 418-7519 |
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